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On Thursday, Canaccord Genuity analysts revised their price target for Pulmonx Corp . (NASDAQ:LUNG) shares, lowering it to $15.00 from the previous $16.00, while still recommending the stock as a Buy. The adjustment comes amid a broader compression in the comparable company group valuations, yet the firm remains optimistic about Pulmonx’s prospects. Currently trading at $4.83, the stock has declined 28.87% year-to-date, though InvestingPro analysis suggests the stock is undervalued at current levels.
The analysts at Canaccord Genuity have expressed confidence in Pulmonx’s potential for long-term growth, citing the company’s own reaffirmation of its ability to achieve over 20% growth in the long term. This optimism appears well-founded, as the company achieved 22.01% revenue growth in the last twelve months, maintaining a robust gross profit margin of 74%. Despite the reduction in the price target, the firm’s stance on the stock’s strength remains unchanged due to the company’s current valuation of 1.7 times enterprise value to sales (EV/Sales). InvestingPro data reveals two key strengths: the company holds more cash than debt and maintains strong liquid assets exceeding short-term obligations.
The reiteration of the Buy rating by Canaccord Genuity suggests that the analysts see Pulmonx as a valuable investment, even as they recalibrate expectations in line with market trends. The company’s commitment to maintaining a high growth rate appears to be a key factor in the ongoing positive assessment. For deeper insights into Pulmonx’s financial health and growth prospects, investors can access additional ProTips and comprehensive analysis through InvestingPro’s detailed research reports.
In their commentary, Canaccord Genuity analysts noted, "Given the company’s reiteration of its confidence in being a +20% growth company long term, and its current valuation of 1.7x EV/Sales, we continue to believe that the setup for the stock is strong. We reiterate our BUY rating and adjust our PT to $15 from $16 given the compression of the comp group."
Pulmonx Corp. investors will be watching closely to see if the company can meet the growth expectations that have been set forth, as well as how the stock will perform in the market following the revised price target from Canaccord Genuity.
In other recent news, Pulmonx Corp reported its first-quarter 2025 earnings, revealing a smaller-than-expected loss per share but a slight miss in revenue projections. The company posted a net loss of $0.36 per share, which was better than the forecasted loss of $0.39 per share. Revenue was $22.5 million, falling short of the $22.03 million expectation. Despite the revenue miss, Pulmonx reaffirmed its full-year revenue guidance of $96-98 million. The company highlighted a 20% year-over-year revenue growth, primarily driven by a 39% increase in international sales, especially in China. Analysts from firms like Stifel and Lake Street Capital Markets noted the company’s strategic initiatives, such as its "Acquire, Test, Treat" strategy, which focuses on expanding its reach and improving patient education. Pulmonx is also actively expanding its international presence, with significant growth in China and ongoing efforts in Japan and Europe. The company is confident in its strategic initiatives and anticipates stronger U.S. growth in the latter half of 2025.
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