Accuray stock price target raised to $5 from $4 at BTIG on strong outlook

Published 14/08/2025, 11:22
Accuray stock price target raised to $5 from $4 at BTIG on strong outlook

Investing.com - BTIG raised its price target on Accuray (NASDAQ:ARAY) to $5.00 from $4.00 on Thursday, while maintaining a Buy rating on the radiation therapy company following its fiscal fourth-quarter results and fiscal 2026 guidance. The stock has shown strong momentum, gaining nearly 13% in the past week, though it remains 51% below its 52-week high of $2.95. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value metrics.

Accuray reported fiscal fourth-quarter revenue of $127.5 million, down 5% year-over-year but exceeding consensus estimates of $123.8 million. The sales beat was primarily driven by product revenue of $70.7 million, which came in nearly $4 million above consensus, while services revenue of $56.8 million was in line with expectations. The company’s trailing twelve-month revenue stands at $458.5 million, with a gross profit margin of 32%. InvestingPro data reveals several additional key metrics and insights available to subscribers.

Gross orders for the quarter reached $84.7 million, down 11% year-over-year but matching consensus estimates of $84.5 million. The company achieved its target book-to-bill ratio of 1.2x, though adjusted EBITDA of $9.4 million fell slightly below the consensus estimate of $10.2 million.

For fiscal 2026, Accuray provided revenue guidance of $471 million to $485 million, significantly above the consensus estimate of $455.1 million. The company also projected adjusted EBITDA of $31 million to $35 million, exceeding the consensus forecast of $29.8 million.

BTIG noted that Accuray successfully navigated challenges during the quarter, including temporarily halted shipments to China and disruptions in the EIMEA region due to Middle East conflicts. The firm believes management’s fiscal 2026 outlook is prudent, with potential upside if macroeconomic pressures and China tariff situations improve. Despite these challenges, InvestingPro assigns Accuray a "Good" Financial Health score of 2.75, with particularly strong marks in profit potential. For deeper insights into Accuray’s financial position and future prospects, investors can access the comprehensive Pro Research Report, part of the extensive analysis available for over 1,400 US stocks on InvestingPro.

In other recent news, Accuray Incorporated reported its fourth-quarter 2025 earnings, highlighting stable financial performance. The company posted earnings per share (EPS) of $0.01, which aligned with analyst expectations. Revenue for the quarter reached $128 million, surpassing the anticipated $123.78 million by 3.01%. This revenue increase reflects a positive trend in Accuray’s financial results. Analysts and investors closely monitor such earnings and revenue results, as they are key indicators of a company’s financial health. These developments are part of the ongoing updates that Accuray provides to its stakeholders. The company’s ability to meet and exceed revenue forecasts is a point of interest for investors.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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