UPDATE: JP Morgan Initiates Zeltiq Aesthetics With Overweight, $16 PT

JP Morgan initiates coverage on Zeltiq Aesthetics (NASDAQ: ZLTQ) with an Overweight rating and a price target of $16 per share to reflect its large market opportunity with minimal regulatory risk.

JP Morgan comments, "We estimate there to be an addressable market in the tens of millions of patients and billions of cumulative dollars for the company's FDA-cleared CoolSculpting procedure, which is applicable to overweight individuals, who comprise ~30% of the population, in particular, those with stubborn bulges (i.e. “exercise resistant” fat). The company is aggressively ramping up sales and marketing to drive uptake of the procedure, while limiting the number of practices (n=4,500) that can buy a system to prevent over-saturation of the market."

ZLTQ closes at $12.34 per share on Friday.