M Partners, a Toronto-based independent investment bank, is out Wednesday with its top picks list for 2022.
The seven stocks on the list are the firm’s highest conviction ideas for the year ahead. This is the first time since 2015 that the company has provided a top stocks list for an upcoming year, according to a company spokesman.
Highlights of their investment case for each of the stocks are included below. Investors are encouraged to use the list as only a starting point for further research.
Opsens Inc. ($4.00 target)
“Opsens is making major strides towards commercializing its transcatheter aortic valve replacement (TAVR) guidewire, the SavvyWire. The TAVR market is expected to grow at a 15% CAGR through 2025 (with a TAM of $8B+) given the time/cost savings and efficacy benefits vs. traditional surgical procedures. The SavvyWire is the only guidewire for aortic valve replacement that can provide continuous pressure measurement and as such we assume it will achieve 10% market share by 2025 (generating $43M in sales). OPS recently completed a 20-patient clinical trial and has filed for approvals with Health Canada and the U.S. FDA. We are expecting Health Canada approval by H1/22, U.S. FDA approval in Q3/22 and European CE certification subsequently.
“Edwards Lifesciences (EW:NYSE) is the largest aortic valve manufacturer in the world but does not produce a TAVR guidewire. Of the major manufacturers that do produce guidewires – Boston Scientific and Medtronic, neither has a wire that can be used to perform continuous pressure measurement. We believe this gap in the market presents a massive opportunity for Opsens to carve out market share or get acquired by a large-cap medical device company.”