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Analysts Slash Price Targets on TELA Bio Following Mixed Q3 Results

MarketDash Editorial Team
24 days ago
TELA Bio posted better-than-expected losses but missed revenue estimates in Q3, prompting analysts to cut their price targets. The medical device company also announced a $13 million capital raise as shares tumbled nearly 14%.

TELA Bio Inc. (TELA) delivered mixed third-quarter results that had analysts reaching for their red pens to mark down price targets.

The medical device company posted a loss of 19 cents per share, which actually beat analyst expectations of a 20-cent loss. So far, so good. But revenue came in at $20.7 million, missing the consensus estimate of $21.8 million. That's the kind of mixed bag that makes Wall Street analysts nervous.

CEO and Co-Founder Antony Koblish tried to keep things positive, saying the company "demonstrated continued growth and meaningful progress this quarter, resulting from a strengthened leadership team and strategic changes to enhance our commercial organization."

In what's often a sign that a company needs cash, TELA Bio also announced a $13 million underwritten registered direct offering of common stock and pre-funded warrants. Investors weren't thrilled—shares plunged 13.7% to trade at $0.96 on Friday.

The analyst reactions were swift. Citizens JMP analyst David Turkaly kept his Market Outperform rating but slashed his price target from $7 down to $5. That's a meaningful reduction that suggests the path forward looks rockier than previously thought.

Piper Sandler analyst Matt O'Brien maintained a Neutral stance but lowered his price target from $2 to $1.25. Even that more conservative estimate got cut by nearly 40%, reflecting concerns about the company's near-term prospects.

With shares now trading under a dollar and analysts trimming their outlooks, TELA Bio faces an uphill battle to convince the market that its strategic changes will translate into the growth investors want to see.

Back to News

Analysts Slash Price Targets on TELA Bio Following Mixed Q3 Results

MarketDash Editorial Team
24 days ago
TELA Bio posted better-than-expected losses but missed revenue estimates in Q3, prompting analysts to cut their price targets. The medical device company also announced a $13 million capital raise as shares tumbled nearly 14%.

TELA Bio Inc. (TELA) delivered mixed third-quarter results that had analysts reaching for their red pens to mark down price targets.

The medical device company posted a loss of 19 cents per share, which actually beat analyst expectations of a 20-cent loss. So far, so good. But revenue came in at $20.7 million, missing the consensus estimate of $21.8 million. That's the kind of mixed bag that makes Wall Street analysts nervous.

CEO and Co-Founder Antony Koblish tried to keep things positive, saying the company "demonstrated continued growth and meaningful progress this quarter, resulting from a strengthened leadership team and strategic changes to enhance our commercial organization."

In what's often a sign that a company needs cash, TELA Bio also announced a $13 million underwritten registered direct offering of common stock and pre-funded warrants. Investors weren't thrilled—shares plunged 13.7% to trade at $0.96 on Friday.

The analyst reactions were swift. Citizens JMP analyst David Turkaly kept his Market Outperform rating but slashed his price target from $7 down to $5. That's a meaningful reduction that suggests the path forward looks rockier than previously thought.

Piper Sandler analyst Matt O'Brien maintained a Neutral stance but lowered his price target from $2 to $1.25. Even that more conservative estimate got cut by nearly 40%, reflecting concerns about the company's near-term prospects.

With shares now trading under a dollar and analysts trimming their outlooks, TELA Bio faces an uphill battle to convince the market that its strategic changes will translate into the growth investors want to see.