Another analyst has picked up coverage of Imris Inc., a medical equipment developer that makes mobile MRI systems for neurological and cardiac surgery.
Douglas Loe at Versant Partners initiated with a Buy rating and one-year price target of $9.75, which implies upside of nearly 70%.
The company’s IMRISneuro system has been approved by the FDA since January 2005. It has sold 35 systems globally, with most of that coming in North America. However, Imris also has a growing presence in Asia-Pacific markets, Mr. Loe told clients.
The company’s MR-angiography systems IMRIScardio and IMRISv have been approved in North America and Europe. Its two sales announced in the fourth quarter of 2009 “already show favourable market adoption,” the analyst said.
Imris has a growing backlog that reflects solid demand for surgical MR capabilities, Mr. Loe noted, adding that it reached $83.8-million at the end of the third quarter, up from $16.3-million at the end of Q2.
While its revenue may still be lumpy and dependent on the installation timelines of hospital, the company’s record-high revenue and gross margin in Q3 provides positive signal on its business fundamentals.