Neuronetics (STIM) has seen a very successful IPO. Incorporating the large opening day returns, and the fact that pricing took place at a price above the preliminary offering range, the market capitalisation is essentially double that of the expectation in the week ahead of the IPO.
This higher share price makes that relative appealing revenue multiples are now a lot higher. Truth of the matter is that while the potential market is huge and the TMS treatment looks promising, yet competition is on the rise as well. Furthermore, the company continues to see significant cash burn, making that the appeal found by myself at the offer price has largely vanished, at least in my opinion.
