Monday, September 22, 2014

QT Vascular rebounds; recent fall uncalled for, says CIMB

Shares of QT Vascular ( Financial Dashboard) have pared some of their 15.4% losses since the start of September.

The counter hit a four-month low of 37 cents last week, but gained as much as 6.5%, to 41 cents, today.

Immediate resistance is seen at the 30-day moving average of 43.5 cents.

Catalist-quoted QT Vascular ( Financial Dashboard) makes non-invasive medical devices used for treating vascular diseases.

Despite being in the red, the company remains popular among some investors, with the stock still well above its IPO price of 28 cents.

According to CIMB analyst Gary Ng, the recent price weakness could have been due to investors selling ahead of the expiry next month of a moratorium for pre-IPO investors. The stock made its trading debut on April 29.

A lack of news flow from QT Vascular ( Financial Dashboard) could also have accounted for the recent price pullback, Ng says in a note.

That said, he believes the recent decline is uncalled for. “Naysayers are missing the point. QTV is not a one-trick pony.”

The company, which already has approval from the US Food and Drug Administration for its flagship “chocolate” and Glider products, has much to gain if it manages to penetrate the US$8-billion ($10-billion) global coronary disease treatment market, says Ng, who has an “add” rating and 73-cent price target on the stock.

“In our opinion, various geographical approvals for coronary balloon catheters could bring QTV’s growth trajectory to the next level.”

QT Vascular ( Financial Dashboard) is also developing its so-called next-generation product pipeline to stay ahead of the competition, he notes. “We think that the ‘holy grail’ in the coronary balloon space is the drug-coated/eluting balloon (DEB). QTV has a drug-coated chocolate, its version of DEB, in its pipeline.”


 

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