Craig-Hallum began covering Bovie Medical Corporation (NYSEMKT:BVX) two weeks ago, assigning the stock a "Buy" rating and issuing a research note on the company to their customers. In the next day or two, the research note will become available for the general public to purchase.
Bovie is slowly receiving more analyst coverage after years of being mostly ignored. Two or three analysts have floated price targets, with the targets in the $4.50 - $5 range. While it's nice to see increased interest in the stock and price targets that are well above the current share price, my opinion is that the stock could end up going much higher than these analysts expect.
Something I've been hammering on in past articles and blog posts is the scope of the markets that the Bovie product pipeline addresses and the superiority of Bovie's technology over existing products in these areas. An example of this is the use of J-Plasma for skin resurfacing. J-Plasma's marked superiority to Botox could make it worth multiple billions in the hands of a major medical device company with the right resources to bring to bear in launching the product into the market.
In-depth research into Bovie's business relationships with other medical device companies (e.g., as described in "Bovie Medical: Little Bovie May Be Running With The Big Dogs") determined beyond a reasonable doubt that Bovie has strong connections with some major players in the field.
The big question is if and when a major player is going to step up to the plate and announce a major deal of some kind with Bovie (or make a buyout offer) - one that will have a very large, positive impact on Bovie's revenues and profits and consequently on its share price.
My opinion is that this is more likely to be a question of "when" than of "if," and that's one of the reasons I'm very bullish on this company.
Disclosure: The author is long BVX.
Additional disclosure: See my previous Seeking Alpha articles on Bovie Medical Corporation (BVX) for cautionary statements (e.g., it is a micro-cap stock and is subject to large fluctuations in the share price).