Brainsway stock maintains Buy rating at H.C. Wainwright after strategic investments

Published 25/08/2025, 12:32
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Investing.com - H.C. Wainwright has reiterated a Buy rating and $17.00 price target on Brainsway (NASDAQ:BWAY), the $288 million market cap medical device company that has delivered an impressive 61% return year-to-date. According to InvestingPro data, the company has shown strong momentum, trading near its 52-week high following the announcement of two strategic investments.

Brainsway reported last week that it entered into a strategic equity financing agreement with Axis Management Company, Inc., a management services organization servicing mental health clinics in Colorado. The deal involves an initial $2.3 million investment with a potential additional $1 million milestone-based investment for a minority position in Axis.

The company also closed an initial strategic investment through a $5 million convertible loan to Neurolief Ltd., with an option to acquire the company. Neurolief develops a wearable, non-invasive, multi-channel brain neuromodulation platform designed for home use, with technology showing positive clinical outcomes for treatment-resistant major depressive disorder and migraine.

H.C. Wainwright noted that while these arrangements involve different companies, both add value to Brainsway - Axis through potential revenue acceleration via the MSO portal, and Neurolief by expanding Brainsway’s technology offerings beyond Deep TMS.

With $78.3 million in cash as of mid-2025, H.C. Wainwright believes Brainsway is well-capitalized to make such investments, supporting the firm’s maintained Buy rating and 12-month price target of $17 per share.

In other recent news, BrainsWay Ltd. reported record quarterly net revenue of $12.6 million for Q2 2025, along with net earnings of $0.05 per share. The company shipped 88 Deep TMS systems during the quarter, marking a 35% increase compared to the same period last year, which expanded its total installed base to 1,522 systems. H.C. Wainwright responded by raising its price target for BrainsWay to $17 from $16, maintaining a Buy rating. In strategic investment developments, BrainsWay has made a $5 million convertible loan investment in Neurolief Ltd., with an option to acquire the company and additional milestone-based funding. This investment is part of BrainsWay’s strategy to enter the market for at-home mental health therapies. Additionally, BrainsWay announced a strategic equity financing agreement with Axis Management Company, investing $2.3 million initially, with a potential additional $1 million based on milestones. This investment secures a minority position in Axis through a preferred, annually compounding security. These moves highlight BrainsWay’s commitment to expanding its presence in mental health care solutions outside traditional clinical settings.

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