Establishment Labs Secures $300M Loan Facility

Mizuho says Establishment Labs shares are down 28% since February 28, the first day of the U.S.-Iran conflict, which is "unwarranted and overdone." Establishment has pulled back on concerns that rising oil prices will pressure the company's margins and consumer demand, the analyst tells investors in a research note. Mizuho adds that the stock has been weak more recently on "unsubstantiated evidence" of a short report and insider selling from former CEO Jaun Jose Chacon. The firm believes the macro concerns are "well overdone" considering Establishment purchases silicone under forward contracts while demand at the consumer level, particularly for Preserve, "remains robust." Further, no short report was published, and insider selling is part of a planned previously disclosed 10b5-1 plan, contends Mizuho. As such, it views the stock's current weakness as an "attractive entry point into a best-in-class growth story." Mizuho has an Outperform rating on Establishment Labs with a $100 price target. The stock is down 6% to $56.29 in afternoon trading.