Cantor Fitzgerald maintains CVRx stock with $20 target

Tuesday, Cantor Fitzgerald reiterated an Overweight rating and a $20.00 price target for CVRx Inc (NASDAQ:CVRX) stock. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $15 to $23. The firm’s analyst highlighted the company’s recent return to robust growth in treatment centers and its positive outlook for the current year. CVRx shares have experienced a significant decline, falling approximately 36% from their six-month peak of $18.40 on January 21, 2025, with the stock currently trading at $11.75, well below its 52-week high of $21.67. The drop occurred despite the company’s 15% quarter-over-quarter increase in center growth during the fourth quarter and expectations for continued positive trends. InvestingPro data reveals impressive revenue growth of 30.53% over the last twelve months, with the company maintaining a strong gross profit margin of 83.75%. The company also maintains a healthy financial position, with a current ratio of 12.06 indicating robust liquidity.

CVRx has also secured important regulatory approvals that are expected to positively impact its future. In October 2024, the company received approval for a Category I Current Procedural Terminology (CPT) code for its Barostim therapy, which is slated for implementation on January 1, 2026. Additionally, the 2025 Outpatient Prospective Payment System (OPPS) ruling for Barostim was favorable. The Centers for Medicare & Medicaid Services (CMS) has designated Barostim to the New Technology Ambulatory Payment Classification (APC) 1580 for the calendar year 2025, which will ensure a continued reimbursement rate of $45,000 in the outpatient setting, consistent with the rate in 2024.

The CMS had initially proposed reassigning Barostim to a different New Technology APC with a lower average payment amount for 2025. However, after reviewing supportive data, the CMS concluded that the APC 1590 code was appropriate. This decision marks a significant step for CVRx, as it provides a more favorable reimbursement scenario for Barostim.

With the acceleration of treatment volumes expected this year and the support of the CPT Code 1 designation, along with a clearer reimbursement environment, Cantor Fitzgerald’s analyst believes that CVRx stock presents a strong buying opportunity at the current levels. The continued reimbursement of $45,000 for Barostim in the outpatient setting is a key factor in the firm’s positive outlook on the stock. For a deeper understanding of CVRX’s valuation and growth potential, InvestingPro subscribers can access comprehensive Fair Value analysis, along with 7 additional ProTips and detailed financial metrics in our exclusive Pro Research Report, part of our coverage of over 1,400 US stocks.

In other recent news, CVRx Inc. reported a strong year-over-year revenue growth of 36% for the fourth quarter of 2024, reaching $15.3 million. The U.S. heart failure segment was a significant contributor, with a 41% increase in revenue. Despite the revenue growth, the company reported a net loss per share of $0.43, slightly missing analysts’ expectations. Cantor Fitzgerald adjusted its price target for CVRx to $20.00 from $22.00, maintaining an Overweight rating, while Canaccord Genuity raised its price target to $23.00, maintaining a Buy rating, reflecting confidence in the company’s growth potential.

CVRx has also expanded its operational scope, ending the quarter with 223 active implanting centers, signaling robust recovery and growth prospects. The company continues to invest in expanding its salesforce and educational efforts, focusing on sustainable Barostim device programs. Recent findings presented at the Technology and Heart Failure Therapeutics conference highlighted a significant reduction in hospital visits for patients using CVRx’s Barostim therapy, further supporting its adoption and potential market expansion.

Cantor Fitzgerald and Canaccord Genuity both noted the company’s strategic initiatives and the potential for increased market share, driven by higher procedure volumes and ongoing real-world evidence accumulation. CVRx’s management has outlined a clear vision for 2025, with revenue guidance set between $63 million and $65 million, and plans to add new implanting centers quarterly. These developments underscore the company’s commitment to growth and its strategic focus on the heart failure treatment market.

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