Street Calls of the Week
On Monday, Benchmark analysts confirmed their Speculative Buy rating and $8.00 price target for Heartbeam Inc. (NASDAQ: BEAT), following the company’s fourth-quarter earnings release. With the stock currently trading at $1.98, this represents significant upside potential. According to InvestingPro data, the company’s stock tends to move independently from broader market trends, with a beta of -0.66. The analysts highlighted Heartbeam’s progress, emphasizing that the company is poised for its initial commercial launch later this year.
Heartbeam has made significant strides, particularly with the FDA’s 510(k) clearance in December for its innovative at-home heart monitoring technology. The device, which is both portable and cable-free, is designed to capture heart signals in three dimensions. This allows for highly accurate diagnoses of various heart conditions, including arrhythmia and ischemia. With a current market capitalization of just $66.78 million, analysts noted that these advancements address a combined total addressable market (TAM) of $21 billion. InvestingPro analysis reveals several key challenges, including rapid cash burn and lack of profitability (discover 4 more exclusive insights with InvestingPro).
The FDA clearance is considered a pivotal step for Heartbeam, paving the way for a subsequent 510(k) clearance expected in the second half of the year. This will encompass algorithms that can translate 3-D heart signals into synthesized 12-lead ECG readings. Additionally, Heartbeam is concentrating on the application of artificial intelligence to develop deep learning algorithms, which could further enhance diagnostic precision and the overall value of their product.
Looking ahead to 2025, the company plans to initiate market research and develop relationships with concierge cardiology practices and their patients. This will lead up to a broader commercial launch scheduled for 2026, contingent upon securing the second 510(k) clearance.
The report also addressed Heartbeam’s financial position, noting that following an equity financing round in February, the company’s proforma cash is approximately $12.6 million. This amount is expected to sustain most of the company’s cash needs for the current year.
In other recent news, HeartBEAM Inc. reported its financial results for the fourth quarter of 2024, missing earnings per share (EPS) expectations with a reported EPS of -$0.73 compared to the forecasted -$0.17. The company remains optimistic about its future, focusing on its cable-free ECG technology and anticipating FDA clearance for its 12-lead synthesis software by the end of 2025. HeartBEAM completed an $11.5 million public offering in February 2025 to bolster its operations. Analysts have yet to issue any upgrades or downgrades following the earnings announcement, but the company continues to pursue strategic partnerships to enhance its market entry. The company is preparing for pilot commercialization in two geographic markets, which is part of its broader strategy to capture a significant share of the cardiac condition management market. HeartBEAM’s CEO, Rob Eno, expressed confidence in the company’s disruptive technology and its potential to change how cardiac conditions are managed. Despite the earnings miss, HeartBEAM remains committed to its commercialization plans and strategic milestones for 2025.
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