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Stifel had initiated coverage of Profound Medical (NASDAQ:PROF) with a hold rating, commenting that the company faces hurdles in increasing adoption of its prostate ablation technology TULSA-PRO.
Stifel said that while TULSA-PRO offers a differentiated, no-incision treatment for prostate cancer, Profound still faces regulatory, operational and financial hurdles to realizing the product’s adoption and utilization potential. TULSA-PRO received FDA approval in 2019.
The investment bank noted that radical prostatectomy surgery and radiation are still the leading treatments for the disease. However, doctors have indicated that TULSA-PRO has the potential to take “meaningful prostate cancer treatment share pending additional data and sufficient reimbursement.”
Stifel set its price target at $11.