William Blair Starts Intersect ENT (XENT) at Outperform

William Blair initiated coverage on Intersect ENT (NASDAQ: XENT) with an Outperform rating. Analyst Matthew O’Brien sees sales of $36.6 million in 2014 and $65.5 million in 2015.

“Intersect’s products address a roughly $840 million domestic market,” O’Brien said. “But we point out that its existing and prospective products provide a continuum of care to a large patient population. In aggregate, we size Intersect’s long-term market opportunity at slightly less than $6 billion, and with no competition in the space or on the horizon, we anticipate Intersect will eventually generate several hundred million dollars in revenue.”

He added, “One component of the story that we believe investors may have missed is the potential for recurring sales of the company’s next-generation products as select patients may choose to receive a resorbable stent a couple of times a year to treat their disease. In summary, we believe Intersect can generate at least 30% top-line growth over the next three years and more than 20% over the next five to seven years, making it one of the most differentiated names in all of medical technology.”

For an analyst ratings summary and ratings history on Intersect ENT click here. For more ratings news on Intersect ENT click here.

Shares of Intersect ENT closed at $19.07 yesterday.

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