On Friday, Roth/MKM began coverage on Allurion Technologies (NYSE: ALUR) stock with a Buy rating and a price target of $2.00. The firm highlighted the company’s development of a next-generation intragastric balloon designed for weight loss, noting its distinct advantage in that it does not require surgery, endoscopy, or anesthesia for placement or removal.
The analyst from Roth/MKM pointed out that Allurion’s product has already received the CE Mark, an indication of conformity with health, safety, and environmental protection standards for products sold within the European Economic Area. This approval is expected to bolster the company’s credibility and market presence.
According to the coverage, Allurion is anticipated to present topline results from its pivotal trial by the end of 2024. These results are crucial for the company’s Pre-Market Approval (PMA) submission, a regulatory process needed to market the device in the United States.
The firm projects that, pending successful trial outcomes and regulatory approvals, Allurion could see its intragastric balloon approved in the U.S. by late 2025. This would significantly expand the company’s market opportunity, potentially increasing its customer base and revenue.
Investors responded positively to the news, with Allurion’s shares experiencing an uptick following the announcement of the Buy rating and the setting of a $2.00 price target by Roth/MKM. The coverage comes as a strong vote of confidence in Allurion’s product and its future prospects in the weight loss device market.
In other recent news, Allurion Technologies reported a 25% increase in its second-quarter revenue to $11.8 million. However, due to regulatory and macroeconomic challenges, the company revised its full-year 2024 revenue guidance downward to $40 to $45 million. Chardan Capital Markets maintained a Buy rating on Allurion’s stock but reduced the price target to $2.50.
Allurion has appointed Keith Johns to its Board of Directors, who brings extensive experience from the metabolic drug industry. In a recent study, Allurion reported safe and sustained weight loss in teens and patients using its Allurion Program.
The company is also facing a potential delisting from the New York Stock Exchange due to non-compliance with the exchange’s minimum share price requirement, but plans to address this issue within the allotted six-month cure period.
These are some of the recent developments for Allurion Technologies. The company continues to innovate in the obesity management sector, with its non-invasive Allurion Program demonstrating promising results in recent studies. Despite facing challenges, Allurion remains committed to its mission of offering safe and effective weight loss solutions.
InvestingPro Insights
With the recent coverage by Roth/MKM, Allurion Technologies (NYSE: ALUR) appears to be on a promising trajectory with its innovative weight loss device. However, an analysis of real-time data and InvestingPro Tips adds further texture to the company’s financial health and market performance.
InvestingPro data indicates a market cap of $40.54M, underscoring a relatively small company size that could be nimble yet susceptible to market fluctuations. The company’s gross profit margin stands impressively at 76.19% for the last twelve months as of Q2 2024, suggesting that Allurion is efficient in its production operations. Despite this, the company’s revenue has declined by 23.59% over the same period, which aligns with analysts’ expectations of a sales decline in the current year.
InvestingPro Tips highlight that Allurion operates with a significant debt burden and may have trouble making interest payments on its debt, which is critical for potential investors to consider. Moreover, the stock price has experienced a significant drop of 86.9% over the past year, reflecting high price volatility and market skepticism.
For readers interested in a deeper dive into Allurion’s financials and market performance, there are additional InvestingPro Tips available, providing a comprehensive analysis of the company’s outlook. As of now, there are 15 more tips listed on InvestingPro that could provide investors with a more nuanced understanding of Allurion’s potential risks and opportunities.
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