Piper ‘strongly’ recommends buying Neuronetics after 22% selloff

Shares of Neuronetics have fallen 22% this year amid concerns over the impact of competition on its financial outlook along with a delay in Japan, Piper Jaffray analyst Matt O’Brien tells investors in a research note. The analyst says he “dug in on” the competitive systems and does not believe they carry the “feature-rich characteristics” of Neuronetics’ NeuroStar product. Further, he had never modeled sales in Japan in 2019 or 2020. As such, O’Brien views the competitive concerns as overdone and “strongly” recommends purchase of Neuronetics shares, which he says is a 20% plus top-line grower trading at less than three times sales.

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