Skin-Tightening Company Endorsed by Paula Abdul Faces Analysts’ Judgment
(Bloomberg) -- After a droopy initial public offering, skin-tightening company InMode Inc.’s fortunes reversed when singer and American Idol judge Paula Abdul signed on as brand ambassador and debut quarterly results wowed. Next week, some analysts will have their first chance to say whether the stock is hot or not.
The shares priced at the bottom of the offering range and fell on the first day of trading. But since then, it’s been a steady upward climb, 55% above the listing price and hovering near record intraday highs. Still, the gains look tame when compared to other medical product providers such as Shockwave Medical Inc. and Silk Road Medical Inc., which more than doubled since their respective IPOs.
The provider of medical technology for minimally and non-invasive beauty treatments could see its first initiations as soon as Tuesday when a 25-day regulatory hush lifts for those at underwriting banks. Its IPO was led by Barclays, UBS, Baird and Canaccord. Currently, there’s no analyst coverage on the stock.
Analysts may have a difficult time arguing for much more upside after the stock’s run-up. However, it’s possible bullish reviews could lift shares even higher, propelling the momentum that began Aug. 13 when pop icon Abdul became brand ambassador, noting that at age 57, living healthy can only take you so far. Later that day, InMode posted quarterly sales that rose 55% year-over-year and a fatter operating margin.
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