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Research analysts at HC Wainwright assumed coverage on shares of MELA Sciences (NASDAQ:MELA) in a report released on Monday, TheFlyOnTheWall.com reports. The firm set a “buy” rating and a $4.50 price target on the stock. HC Wainwright’s price objective would indicate a potential upside of 95.65% from the stock’s previous close.

The analysts wrote, “MELA Sciences has developed a multi-spectral scanning device, MelaFind, that can help the dermatologist to decide if a biopsy is required for diagnosing an atypical mole as a melanoma. MelaFind entered the US market upon FDA approval in 2011. However, the initial launch strategy was unsuccessful resulting in unprofitable operations. “In late 2013, current management was brought on board to execute new commercialization strategies which are currently underway. An application has been filed with the American Medical Association to obtain a Current Procedural Terminology (CPT) code for reimbursement, and a decision is expected in 4Q15. In the meantime, management is raising awareness of MelaFind through by engaging with key opinion leaders and publications. Management has also initiated the new commercialization strategy to either lease or sell MelaFind to dermatologists and key institutions that treat high-risk melanoma patients. “Though the company seems to be in a ‘show-me’ situation, considering the current management’s previous successful commercial experience and their commitment to the new strategy, MelaFind’s commercial potential, and improving operational efficiency, we believe MELA shares are currently undervalued.”

Shares of MELA Sciences (NASDAQ:MELA) opened at 2.36 on Monday. MELA Sciences has a 52 week low of $1.98 and a 52 week high of $10.40. The stock’s 50-day moving average is $2.58 and its 200-day moving average is $4.85. The company’s market cap is $12.3 million.

MELA Sciences (NASDAQ:MELA) last posted its quarterly earnings results on Wednesday, August 13th. The company reported $12.00 EPS for the quarter.

MELA Sciences, Inc, formerly Electro-Optical Sciences, Inc, is a medical device company focused on the design, development and commercialization of a non-invasive, point-of-care (NASDAQ:MELA) instrument to assist in the early diagnosis of melanoma.

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