Maxim lowered the price target on Sientra Inc (NASDAQ:SIEN) to $7 from $13 but kept a Buy rating on the stock.
- Analyst Anthony Vendetti notes that the Company's Q4 revenue was in-line with its pre-announcement in January, but gross margin was below expectations.
- Vendetti adds that the lower price target also reflects industry-wide compression, though he remains positive on Sientra's above-peer growth in the breast products market.
Stifel has also lowered the price target on Sientra to $7 from $11 and with Buy rating unchanged.
- Analyst Jonathan Block says that though initial 2022 revenue guidance is slightly below his estimate and the Street view, he believes management is taking a conservative approach.
- Block added that he likes the strategic direction that Sientra is headed. The Company focuses on the long-term opportunity in the reconstruction market, where he notes that pricing is more favorable relative to augmentation.
- Earnings: Sientra reported Q4 FY21 sales of $22.6 million, +26.6% Y/Y, beating the consensus of $21.48 million.
- It reported EPS loss of $(0.27) down from (0.40) a year ago and missing the consensus of $(0.19).
- Guidance: For FY22, the Company expects sales of $93 million - $97 million, versus the consensus of $96.01 million.
- Earlier today, Health Canada approved Sientra's line of smooth surface, High-Strength Cohesive (HSC and HSC+) silicone gel breast implants.
- Sientra will market its breast implants in Canada through its local partner Kai Aesthetic.
- Price Action: SIEN shares are up 4.07% at $2.56 during the market session on the last check Thursday.
