Establishment Labs Holdings Inc. (NASDAQ:ESTA) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Analysts broadly favor Establishment Labs: Nine brokerages give the stock an average “Moderate Buy” rating, with eight buys and one sell. The average 12-month price target is $100.25, though individual targets range from $92 to $117.
• Institutional ownership is substantial: Institutional investors hold 72.91% of the company, with major firms including California State Teachers’ Retirement System, BlackRock, Nantahala Capital Management, Bamco and Goldman Sachs increasing or initiating positions.
• Revenue growth remains strong but profitability is weak: Quarterly revenue rose 31.7% year over year to $67.54 million, exceeding estimates, while adjusted earnings missed expectations at a loss of $0.39 per share. The company continues to report negative net margins and return on equity.

Shares of Establishment Labs Holdings Inc. (NASDAQ:ESTA - Get Free Report) have been given an average recommendation of "Moderate Buy" by the nine ratings firms that are currently covering the stock, Marketbeat Ratings reports. One research analyst has rated the stock with a sell recommendation and eight have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $100.25.

Several equities research analysts have commented on the company. BTIG Research boosted their target price on Establishment Labs from $96.00 to $103.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Weiss Ratings restated a "sell (e+)" rating on shares of Establishment Labs in a report on Wednesday, June 24th. TD Cowen lifted their price target on Establishment Labs from $95.00 to $117.00 and gave the stock a "buy" rating in a research report on Monday, August 3rd. JPMorgan Chase & Co. upped their price target on shares of Establishment Labs from $84.00 to $95.00 and gave the stock an "overweight" rating in a research note on Friday, August 7th. Finally, Citigroup raised shares of Establishment Labs from a "neutral" rating to a "buy" rating and set a $92.00 price objective on the stock in a research report on Thursday, August 13th.

Institutional Investors Weigh In On Establishment Labs

Several institutional investors and hedge funds have recently made changes to their positions in the company. Nantahala Capital Management LLC lifted its position in Establishment Labs by 11.1% in the 3rd quarter. Nantahala Capital Management LLC now owns 1,973,492 shares of the company's stock valued at $80,893,000 after acquiring an additional 197,962 shares in the last quarter. California State Teachers Retirement System raised its stake in shares of Establishment Labs by 8,625.7% in the second quarter. California State Teachers Retirement System now owns 1,930,124 shares of the company's stock worth $165,624,000 after purchasing an additional 1,908,004 shares during the last quarter. BlackRock Inc. bought a new position in shares of Establishment Labs during the second quarter valued at $135,752,000. Bamco Inc. NY lifted its holdings in shares of Establishment Labs by 21.5% during the second quarter. Bamco Inc. NY now owns 907,537 shares of the company's stock valued at $38,761,000 after purchasing an additional 160,755 shares in the last quarter. Finally, Goldman Sachs Group Inc. boosted its position in shares of Establishment Labs by 117.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 811,536 shares of the company's stock valued at $59,145,000 after buying an additional 438,206 shares during the last quarter. Institutional investors own 72.91% of the company's stock.

Establishment Labs Price Performance

Shares of NASDAQ ESTA opened at $72.45 on Thursday. Establishment Labs has a fifty-two week low of $36.53 and a fifty-two week high of $97.59. The company has a 50 day simple moving average of $85.54 and a two-hundred day simple moving average of $74.92. The company has a market capitalization of $2.16 billion, a price-to-earnings ratio of -55.31 and a beta of 1.07. The company has a debt-to-equity ratio of 12.11, a quick ratio of 2.52 and a current ratio of 3.84.

Establishment Labs (NASDAQ:ESTA - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.39) EPS for the quarter, missing analysts' consensus estimates of ($0.34) by ($0.05). The company had revenue of $67.54 million during the quarter, compared to the consensus estimate of $65.79 million. Establishment Labs had a negative return on equity of 196.69% and a negative net margin of 15.82%.The business's revenue for the quarter was up 31.7% compared to the same quarter last year. During the same period in the prior year, the firm earned ($0.57) earnings per share. Analysts expect that Establishment Labs will post -1.15 EPS for the current fiscal year.

Establishment Labs Company Profile

Establishment Labs Holdings Inc is a global medical technology company specializing in the design, development and manufacture of silicone gel breast implants for aesthetic and reconstructive surgery. The company's proprietary portfolio is built around patient-focused safety, customization and innovation, offering solutions intended to enhance surgical outcomes and support clinical traceability.

The company's flagship products fall under the Motiva® brand, which includes a range of ergonomic and round breast implants featuring SilkSurface® texturing and an embedded Q Inside® Safety microtransponder for unique implant identification.

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