On Thursday, TD (TSX:TD) Cowen affirmed a Buy rating on Owlet Inc. (NYSE:OWLT) with a steady price target of $15.00. The endorsement comes after a discussion with the company's management, which bolstered confidence in the firm's trajectory. The analyst highlighted the recent appointment of Ms. Crawford, suggesting it would lead to a smooth leadership transition.
The firm remains optimistic about Owlet's prospects, citing the company's path to achieving its adjusted EBITDA break-even point and its ongoing growth initiatives. The analyst's remarks underscore the potential of Owlet's product offerings, including the Dream Sock and BabySat, both of which are expected to see increased adoption following FDA clearance.
The analysis also pointed to Owlet's efforts to expand in Europe, develop subscription software services, and conduct clinical studies as significant but underrecognized areas for market expansion. These initiatives are seen as key drivers for Owlet's future growth and are believed to present substantial opportunities to increase the company's total addressable market (TAM).
The positive outlook for Owlet is further reinforced by the belief that these strategic moves will contribute to the company's long-term success. Owlet's commitment to its growth initiatives and the anticipated seamless transition under Ms. Crawford's leadership are central to the company's strategy to enhance shareholder value.
In other recent news, Owlet, Inc. has reported significant financial growth in the first quarter of 2024, including a 48% increase in gross billings to $18.4 million, a 37% increase in net revenue to $14.8 million, and a net income of $3.3 million. The company also received FDA clearance and CE Medical authorization in Europe, marking important regulatory achievements. Owlet's Dream Sock product has received UKCA certification, enabling its sale in the United Kingdom, following the recent EU CE mark certification.
This certification allows Owlet to extend its reach in the European market, with plans to launch the Dream Sock at major retailers in the UK, Germany, and France in the coming months. The Dream Sock, which monitors oxygen saturation and pulse rate in infants, is a new feature in the UK market. The company anticipates a seasonal revenue increase in Q2 due to Mother's Day and Prime Day promotions.
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