In a report released yesterday, Sean Lavin from BTIG maintained a Buy rating on Neuronetics Inc (STIM), with a price target of $25. The company’s shares closed yesterday at $16.53, close to its 52-week low of $13.26.
Lavin commented:
“$25 PT Neuronetics reported 4Q18 results with both capital sales and treatment revenue surpassing our forecast. Ending BDM count was in-line with expectations, implying rep productivity is ahead of planned (mgmt confirmed the same). Looking ahead to FY19, top-line guidance brackets current Street estimates. Mgmt is assuming more rep hires than the Street, driving up the operating expense outlook. On underlying assumptions, mgmt appears to be basing forecasts on historical productivity metrics instead of more recent encouraging trends likely creating upside. Additionally, the company does not appear to be aggressively signaling gross margin expansion though we still feel a greater mix of higher-margin consumable sales should push this metric higher.”
According to TipRanks.com, Lavin is a 5-star analyst with an average return of 10.7% and a 60.2% success rate. Lavin covers the Healthcare sector, focusing on stocks such as Establishment Labs Holdings Inc, Helius Medical Technologies, and Tactile Systems Technology.
Currently, the analyst consensus on Neuronetics Inc is a Strong Buy with an average price target of $25.33, representing a 53.2% upside. In a report issued on February 21, Piper Jaffray also reiterated a Buy rating on the stock with a $35 price target.
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Based on Neuronetics Inc’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $4.96 million. In comparison, last year the company had a GAAP net loss of $3.75 million.
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Neuronetics, Inc. commercial stage medical technology company. It focuses on designing, developing and marketing products for the patients suffering from psychiatric disorders. The firm offers NeuroStar TMS, a therapy system for the treatment of major depressive disorders in adult patients.
