Shoulder Innovations (SI) – Small-Cap MedTech With Room to Run
Shoulder Innovations is a name worth paying attention to. The company went public just last month at $15 per share, and after sliding as low as $12.71 in August, it now trades near $14.93. That dip looks more like an opportunity than a warning.
Here’s why: the market for shoulder implants is expanding, and SI’s IPO proceeds give it enough runway to scale its business and push toward profitability. Management has already laid out a clear plan—funding an expanded sales force, commercial infrastructure, and rolling out new pipeline products that can command premium pricing. Combined with secular tailwinds, like more procedures moving into outpatient settings, the growth story here is compelling.
While the company is still in its early stages as a public stock, the valuation sits well below its peers in the small- and mid-cap MedTech space. That disconnect could be where the upside comes from. Goldman Sachs recently set a $20 price target on SI, which represents a potential gain of more than 57% from where shares closed Friday. Jefferies also started coverage with a buy rating, while Morgan Stanley and Piper Sandler both came in overweight.
For investors comfortable with small-cap volatility, SI looks like it’s positioned at the right intersection of a growing market, new product launches, and a cash infusion from its IPO. If management executes, the next leg higher could come sooner than the market expects.
