Goldman Sachs says Shoulder Innovations could have a massive growth runway ahead of it. The firm initiated coverage of the shoulder implants stock with a buy rating and a $20 per share price target in a Sunday note. Goldman’s forecast implies more than 57% upside from Friday’s $12.71 close. Shoulder Innovations went public late last month at $15 per share. The stock has slipped about 16% in August. Morgan Stanley, Goldman and Piper Sandler were the joint lead booking-running managers for the offering. Jefferies and BTIG also participated. Jefferies also began coverage of the stock Monday with a buy, while Piper and Morgan Stanley each initiated at an overweight. SI 5D mountain Shoulder Innovations stock over the past five days Goldman analyst David Roman expects Shoulder Innovation’s stock to appreciate as there is an expanding market for shoulder implants and the proceeds from its IPO could “provide sufficient runway for Shoulder Innovations to reach profitability.” “When considering the revenue growth trajectory, attractive end-market, and [small- and mid-cap] MedTech comps, we see meaningful upside to current valuation,” Roman said. “Key growth drivers for Shoulder Innovations include the anticipated use of IPO proceeds for sales force and commercial organization expansion, the launch of pipeline products that fill gaps in the portfolio and are all accompanied by price premiums, and secular tailwinds such as the shift of procedures to the outpatient setting,” the analyst added.
