Canaccord cuts CVRx stock target to $18, maintains Buy rating

Published 08/04/2025, 12:26
Canaccord cuts CVRx stock target to $18, maintains Buy rating

Tuesday, Canaccord Genuity adjusted its price target on CVRx Inc (NASDAQ:CVRX) shares to $18 from the previous $23, while maintaining a Buy rating on the company. CVRx reported preliminary first-quarter revenues of approximately $12.3 million, marking a year-over-year increase of about 15%. However, this figure fell short of Canaccord's $14.5 million estimate and the consensus estimate of $14.7 million. According to InvestingPro data, the company has demonstrated strong revenue growth of 30.53% over the last twelve months, with an impressive gross profit margin of 83.75%.

The revenue breakdown for the quarter showed $11.2 million generated from the U.S., a 14.3% increase from the previous year, and $1.1 million from European operations. The U.S. revenue specifically did not meet Canaccord's expectation of $13.6 million. The analyst suggested that the stock might experience a negative reaction due to the results being primarily underwhelming in the U.S. market. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 12.06, indicating robust liquidity to meet short-term obligations.

CVRx concluded the first quarter with 227 active implanting centers, which was a slight increase from the previous quarter but below Canaccord's anticipated 232 centers. Additionally, the company's sales territories saw a reduction, ending the quarter with 45 territories compared to 48 at the end of the fourth quarter of 2024. This number was also lower than the projected 51 territories for the first quarter of 2025. Want deeper insights? InvestingPro subscribers have access to extensive financial metrics, analyst forecasts, and a comprehensive Pro Research Report that provides actionable intelligence for smarter investing decisions.

The company also disclosed that it had issued 543.5 thousand common shares through its at-the-market (ATM) offering, raising $9.5 million in gross proceeds. This move is part of CVRx's efforts to strengthen its financial position and continue its operations and growth initiatives. InvestingPro data reveals the company holds more cash than debt on its balance sheet, supporting its growth strategy despite current market challenges.

In other recent news, CVRx Inc. reported a notable 36% increase in revenue for the fourth quarter of 2024, reaching $15.3 million, driven largely by a 41% rise in U.S. heart failure sales. Despite this growth, the company posted a net loss per share of $0.43, slightly missing the earnings per share forecast. Cantor Fitzgerald adjusted its price target for CVRx to $20.00, maintaining an Overweight rating, while Canaccord Genuity raised its target to $23.00, continuing with a Buy rating. These adjustments reflect the firms' positive outlook on CVRx's financial performance and growth potential.

CVRx also received significant regulatory approvals, including a favorable ruling from the Centers for Medicare & Medicaid Services, which maintained the reimbursement rate for its Barostim therapy at $45,000 for 2025. The company is expected to benefit from new Category I Current Procedural Terminology codes for Barostim therapy, effective January 2026, which may enhance reimbursement scenarios. Real-world evidence presented at a recent conference highlighted Barostim's effectiveness in reducing hospital visits, which Cantor Fitzgerald believes will encourage further adoption of the device. These developments are expected to positively influence CVRx's market position and financial performance.

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