Benchmark maintains Buy on Milestone Scientific, $1.25 target

Published 23/04/2025, 16:06
Benchmark maintains Buy on Milestone Scientific, $1.25 target

On Wednesday, Benchmark analysts reiterated their Buy rating on Milestone Scientific (NYSE:MLSS) shares, maintaining a price target of $1.25. According to InvestingPro data, the stock has shown strong momentum with a 63% return over the past year, though current analysis suggests the stock is trading above its Fair Value. The company reported ending the fourth quarter with $3.3 million in cash and no outstanding debt, with InvestingPro data showing a healthy current ratio of 2.48 and minimal debt-to-equity of 0.06. Management has shown optimism for the year 2025, citing a strong initial performance in the first quarter, despite the company’s current unprofitable status.

Milestone Scientific’s progress in the Medicare market segment for pain management was highlighted by the analysts. The company’s CompuFlo System, which has gained coverage from three out of the 12 Medicare Administrative Contractors (MACs), presents a compelling value proposition for pain management providers. With a robust gross margin of 74.56% and current annual revenue of $8.63 million, this could potentially fuel growth in a Medicare market segment that sees approximately 3.6 million procedures annually.

The company is not stopping there. It aims to extend its reach by securing coverage from the remaining nine MACs and is also planning to pursue reimbursement from private payors. If successful, this strategy could open up a total available market of nine million procedures for Milestone Scientific.

Benchmark’s analysts have chosen to maintain their Speculative Buy rating and a price target of $1.25 for Milestone Scientific’s stock. This target is rooted in a revenue projection: it is based on five times the firm’s estimated revenue of $26 million for the year 2030, discounted back to the end of 2025 at a rate of 8.7%, which is identified as the company’s weighted average cost of capital. For deeper insights into MLSS’s valuation and growth potential, including additional ProTips and comprehensive financial analysis, visit InvestingPro.

In other recent news, Milestone Scientific Inc. has announced the commercial introduction of its CompuFlo® Epidural System at Advanced Spine and Pain Management. This development follows a successful pilot program, where Dr. Varinder Dhillon endorsed the system for its potential to improve patient safety and procedural efficiency. The CompuFlo® Epidural System utilizes Milestone Scientific’s patented Dynamic Pressure Sensing Technology® to provide real-time feedback for accurate needle placement, aiming to reduce complications compared to traditional methods. The system is now operational at SurgiCore Montvale, part of a network of 12 SurgiCore centers in the New York/New Jersey area, indicating a potential for broader adoption. The company notes a growing acceptance of the system, supported by a recent Medicare price assignment, which highlights its clinical and economic advantages. Neal Goldman, Chairman and Interim CEO of Milestone Scientific, expressed optimism about the system’s uptake in the healthcare community. This optimism is attributed to the recent Medicare pricing and the technology’s merits. These developments underscore Milestone Scientific’s commitment to enhancing precision, efficiency, and patient safety in medical procedures.

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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