Why Pulse Biosciences Stock Popped Today
Key Points
An analyst initiated coverage with an unambiguous buy recommendation.
He feels that one market in particular is ripe for disruption by the company.
Investor pulses were racing for Pulse Biosciences (NASDAQ: PLSE) on Wednesday, as it was one of the better-performing medical device stocks on the market. This came down to an initiation of coverage by an analyst, backed by a rather positive evaluation of the company's business. Pulse's stock closed the day nearly 10% higher.
Launched with a bullish view
The initiating party was Freedom Capital Markets' Keith Hinton, who believes Pulse stock is a buy at a price target of $73 per share.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
The pundit's bullish view, according to reports, centers on atrial fibrillation ablation, the surgical correction of an irregular heartbeat. The company's devices use a proprietary technology called nano-pulse stimulation (NPS), in which non-thermal, electrical energy pulses are used to do the work.
Currently, two NPS-based devices have been approved for clinical trials to treat atrial fibrillation. Hinton believes this is a rather large market that could potentially be disrupted by Pulse's advanced technology. If those trials are successful, the analyst speculated that the company could be bought out in the second half of 2027. The pundit added that Pulse also has a strong cash position.
Unique and worth monitoring
Pulse is undoubtedly a unique medical device maker worth keeping an eye on. Whether it's a buy or not depends on an investor's risk tolerance, as the company will surely have much riding on the outcome of the lab testing for the treatment of atrial fibrillation. Personally, I'd be inclined to buy the stock, given its significant potential upside.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.