Monday, December 06, 2021

Helius Medical Technologies (HSDT)(HSM:CA)
Sell Off Too Deep; Upgrading to Outperform

Helius Medical Technologies is a neurotech company focused on neurological wellness. The Company’s purpose is to develop, license and acquire unique and non-invasive platform technologies that amplify the brain’s ability to heal itself. The Company’s first commercial product is the Portable Neuromodulation Stimulator (PoNSTM). For more information, visit www.heliusmedical.com.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Gregory Aurand, Senior Research Analyst, Healthcare Services & Medical Devices, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Raising to Outperform. We had downgraded HSDT shares on November 15th on the heels of the capital raise as we expected a period of consolidation given the significant discount to the then market price the new shares were sold. However, the sharp drop in the shares since then is presenting investors with a favorable risk/reward opportunity, in our view, and we are raising our rating to Outperform.


Sell Off.  Helius sold shares in the capital raise at $8.00 on November 12th. After a week of trading sideways, the shares steadily moved lower, bottoming out at $5.54 on December 2nd. Volume, while higher than the historical level, was not outrageously high. We suspect there has been a fair amount of tax selling going into year-end, especially as the shares were at the $14 level just prior to the …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.