Tela Bio downgraded to Neutral from Overweight at Piper Sandler

Piper Sandler analyst Matt O’Brien downgraded Tela Bio (TELA) to Neutral from Overweight with a price target of $2, down from $5, after the company reported Q4 results that were “well below” the firm’s estimates. Management provided FY25 guidance that was also well below the firm’s original targets and represents a big ramp throughout the course of the year, notes the analyst, who believes hitting its top-line outlook may prove difficult. While management is confident that they have enough cash to get to break-even, the firm believes another financing “could be in the cards,” the analyst added.