Craig-Hallum bullish on Myomo, initiates with a Buy

As previously reported, Craig-Hallum initiated coverage of Myomo with a Buy rating and $7 price target. 640K patients survive a stroke annually, and the firm believes half have hemiparesis of some degree. After excluding other patients who are not eligible for MyoPro, Craig-Hallum thinks there are 30K patients a year who have a stroke and are good patients for MyoPro, a $1B-$2B annual opportunity. Moreover, it believes 187K patients could be eligible who have had strokes previously, a massive opportunity in the prevalence pool to work on over time. With a two-channel strategy in place to target both populations with minimal overlap, the firm thinks Myomo will execute on this opportunity, growing revenues meaningfully over the next several years. Ultimately, it sees $100M in annual top-line revenue in the foreseeable future, as the company works at executing in this large market opportunity.