Carlsmed initiated with Buy at Truist on business potential

Medical technology firm Carlsmed (NASDAQ:CARL) was initiated with a Buy at Truist Securities banking on the company’s positive business growth potential, consistently high gross margins, and premium reimbursement profile. 

Carlsmed, which recently debuted on the public markets with its July 2025 IPO, is in the spine surgery sector.

"Established coding/payer coverage supports attractive hospital economics (even at a price premium), while an "asset-light" business model should prove scalable as the company increases adoption into a $13.4B US Lumbar fusion market opptunity," analysts at Truist remarked.

A price target of $18 reflects a forward-looking valuation of about 6x and about 4x estimated FY26 and FY27 revenues, respectively, analysts added.

Truist says that while risks remain, including competitive pressures, changes in reimbursement, and the challenges of scaling surgeon training, Carlsmed’s personalized, AI-driven approach position it as a standout innovator in the evolving spine surgery market.