Oppenheimer is out positive on Hansen Medical (HNSN) upping their target to $52 from $36 after meeting with management last week. The firm notes they continue to see extremely strong interest in the Sensei system.
One hundred one procedures were completed in the September quarter (up from 48 from May through mid August). It seems that at the Cleveland Clinic one physician prefers the Stereotaxis (STXS) system, several physicians prefer the Sensei, and several use both systems. It is their view that so long as the preference is equal or better, that up front price will be the deciding factor. The firm expects Hansen's ramp up to accelerate.
Additionally, they have learned that the production holding back system installations is actually the production of the disposables. Hansen expects to be able to meet demand with its new production facility in 2008. The firm has spoken to many cardiologists who truly appreciate the significance remote navigation will have on medicine in the future.
On the valuation side, Oppenheimer will now use 10x, in-line with Stereotaxis, even though they believe Hansen will have the faster ramp.
Notablecalls: Expect to see strong buy interest in HNSN as the stock is a mo-mo darling and OpCo's target represents the new Street high.