Silk Road Medical, Inc. (NASDAQ: SILK) ran 264% from Covid bottom to peak before giving up most of the gains. The good news is that the medical device maker is capable of extended rallies. And trading back around $30 per share, another big run isn’t out of the question.
Price targets issued this year on Silk Road Medical average $39. But it is the high end of the target range that makes the stock intriguing. J.P. Morgan and SVB Securities see the carotid artery disease specialist returning to $52, not to be outdone by Stifel Nicholas which has a $55 bullseye.
To attain these bullish targets, Silk Road Medical will need to demonstrate traction among surgeons with its novel Transcarotid Artery Revascularization (TCAR) approach. The minimally invasive procedure is designed to treat blockages in the arteries while preserving their structure to reduce the risk of stroke.
Less than 10% of the carotid artery disease procedures performed in the U.S. last year used the TCAR approach. This means room for adoption is substantial.
Silk Road’s quest to enhance awareness is spreading. It has gone all in on TCAR by investing in sales territory expansion, physician training, and label extensions. Beyond the immediate domestic opportunity, plans to seek TCAR approval in Japan and China hold tremendous growth potential.