BrainsWay stock holds $16 target, Buy rating at H.C. Wainwright

Published 27/05/2025, 12:30
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On Tuesday, H.C. Wainwright reaffirmed its confidence in BrainsWay (NASDAQ:BWAY), maintaining a Buy rating and a $16.00 price target on the stock. The firm’s analyst highlighted BrainsWay as a compelling investment within the medical technology sector, following the company’s first-quarter earnings report for 2025. According to InvestingPro data, the stock has delivered an impressive 98.7% return over the past year, with analysts maintaining a strong buy consensus and price targets ranging from $14.20 to $16.00.

BrainsWay reported first-quarter revenues of $11.5 million, aligning closely with H.C. Wainwright’s projection of $11.3 million. The company’s strong performance is reflected in its robust 26.86% revenue growth and impressive 74.51% gross profit margin, as reported by InvestingPro. The analyst has adjusted the full-year 2025 revenue forecast to $51.6 million, up from the previous $50.8 million. Additionally, the 2026 revenue estimate has been slightly increased to $60.8 million from an earlier estimate of $60 million.

The company achieved net earnings of $0.03 per share for the first quarter, which was consistent with H.C. Wainwright’s initial estimate. BrainsWay’s management has maintained their revenue guidance for the year within the range of $49-51 million. The firm ended the first quarter with $71.6 million in cash, cash equivalents, and short-term deposits, excluding restricted cash of approximately $271,000. This strong financial position, supported by a healthy current ratio of 5.03 and minimal debt-to-equity ratio of 0.09, is believed to offer BrainsWay significant strategic flexibility and could enable potential licensing deals to expand its product offerings.

H.C. Wainwright projects full-year 2025 net earnings to be $0.19 per share, virtually unchanged from the prior forecast of $0.18 per share. The firm’s estimate for 2026 net earnings per share has been revised upward to $0.27 from the previous estimate of $0.24. This adjustment reflects expectations for strong growth in both revenue and earnings, along with slightly lower operating expenses than previously anticipated.

BrainsWay’s continued profitability and positive cash flow are anticipated, with the company maintaining its operating income guidance at 3-4% and adjusted EBITDA at 11-12% for 2025. In the first quarter alone, BrainsWay shipped 81 Deep TMS systems, marking a 42% increase from the same period in the previous year. The company is also preparing to launch its next-generation Deep TMS 360 system and is progressing with its U.S. multi-center trial for an accelerated Deep TMS protocol in treating major depressive disorder. For detailed analysis of BrainsWay’s growth potential and comprehensive financial metrics, investors can access the full company research report on InvestingPro, which includes expert insights and advanced valuation models.

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