US stock futures dip as Nvidia earnings spark little cheer
On Monday, Cantor Fitzgerald reaffirmed its positive stance on Nano-X Imaging (NASDAQ:NNOX), maintaining an Overweight rating and a price target of $9.00. The stock has shown strong momentum with a 9.7% gain over the past week, according to InvestingPro data. Analyst targets for NNOX range from $9 to $15, suggesting potential upside from current levels. The firm’s analysts highlighted the recent FDA approval of ARC X, Nano-X Imaging’s advanced system, as a significant development. The FDA 510(k) clearance, announced on Sunday, is specific to full-body use and serves as an adjunct to conventional radiography for adult patients. Although the system did not receive clearance as a standalone solution, its design allows for easy integration into standard X-ray shielded rooms, which is expected to lower infrastructure demands.
The analysts expressed their satisfaction with the speed of FDA approval for Nano-X Imaging’s next-generation system. They noted the smaller footprint of the ARC X system as a more appealing feature for potential users. The Overweight rating was reiterated based on the belief that the system’s ’plug-and-play’ capabilities will likely enhance its adoption rate upon its market launch later in the year.
Nano-X Imaging has positioned the ARC X system as a versatile and user-friendly option for healthcare providers. Its ability to fit seamlessly into existing X-ray rooms without significant modifications is anticipated to be a key driver for its adoption in various medical settings.
The FDA’s approval is seen as a milestone for Nano-X Imaging, validating the company’s technological advancements in radiography. The ARC X system’s approval, despite not being as a standalone offering, is still a step forward in the company’s growth trajectory. InvestingPro data shows the company maintains strong liquidity with a current ratio of 5.63 and holds more cash than debt on its balance sheet, providing financial flexibility for the system’s commercial launch.
Nano-X Imaging’s stock is expected to be influenced by the market’s response to the FDA’s decision and the company’s progress towards launching the ARC X system. As the year progresses, industry observers will be watching for updates on the system’s deployment and its impact on Nano-X Imaging’s market position. Analysts anticipate significant revenue growth of 104% for fiscal year 2025, though the stock’s beta of 2.03 indicates higher volatility than the market average. For deeper insights into NNOX’s valuation and growth prospects, investors can access the comprehensive Pro Research Report available on InvestingPro, which includes 10+ additional ProTips and extensive financial metrics.
In other recent news, Nano-X Imaging has received 510(k) clearance from the U.S. Food and Drug Administration for its Nanox.ARC X digital tomosynthesis system. This approval allows the system to produce 3D medical images for various indications, marking a significant advancement in medical imaging technology. The company plans to launch the Nanox.ARC X later this year, aiming to expand its product portfolio. Despite this progress, Nano-X Imaging reported a wider net loss of $14.1 million for the fourth quarter of 2024, compared to $10.2 million in the same period the previous year. Revenue increased to $3 million, driven primarily by a 23% year-over-year rise in teleradiology services to $2.8 million. However, Cantor Fitzgerald reduced its price target for Nano-X Imaging from $12.00 to $9.00, while maintaining an Overweight rating, due to the company’s lower-than-expected revenue. Nano-X Imaging is focusing on expanding its market presence in the U.S. and Europe, with strategic advancements including FDA clearance and CE Mark for key products. The company continues to emphasize its commitment to delivering innovative imaging solutions and expanding its customer base.
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