Findell Capital Management LLC, an investment management firm, today announced the release of a detailed Report on Establishment Labs Holdings Inc. (Nasdaq: ESTA), which can be found here.
ESTA is a NASDAQ listed company, headquartered in Costa Rica, that has developed and commercialized a significantly improved breast implant. We believe ESTA stock has a credible pathway to double in the next year, with an opportunity to grow multiples beyond that with a long-term price target of +$200 versus $44.48 (6/14/2024 close).
ESTA screens as expensive (7.7x sales multiple) and has a corresponding large, short interest (20%) and was also subject to a Hindenburg short report in 2022. However, Findell believes that ESTA has one of the best fundamental growth stories in the med-tech space over the next several years and 2024 will be a crucial inflection year with the launch of Motiva in the US and the roll out of Mia-Femtech abroad.
ESTA has developed and commercialized a significantly improved breast implant, Motiva, that is on the cusp of being cleared by the FDA. This US launch coupled with the launch in China should allow ESTA’s base business to grow at a +30% CAGR over the next several years.
The market has yet to fully appreciate how differentiated this product is from legacy products and how untenable it will be in the long run from a liability perspective for doctors to use anything but Motiva, the safest product ever developed by a large margin. We believe that Motiva’s launch in the US will be similar to how it launched in Switzerland and South Korea – it will take majority share in short order.
ESTA has also developed a minimally invasive procedure called Mia-Femtech, which it has just begun to roll out. Mia is a 15-minute augmentation procedure that requires no general anesthesia and has minimum recovery time and achieves a very natural look. Given how radically different a procedure this is – both in the process and the final output – Mia could significantly expand the addressable market for augmentation – this could be to breast enhancements what Ozempic is for weight loss.
With Motiva’s launch expected in early Q3 pending a site visit by the FDA and Mia-Femtech’s roll out underway, the second half of 2024 and early 2025 will provide several proof points of this burgeoning growth story and the heavily shorted stock should re-rate accordingly.
Findell will be doing a live interview with SumZero at 10:00 a.m., Monday, June 17, 2024 to further discuss the story. To register – click here.
Contact:
Findell Capital Management
LLC88 Pine Street, 22nd Fl.New York, NY 10005
info@findell.us