These are top 10 stocks traded on the Robinhood UK platform in July
On Thursday, Citi analysts adjusted their outlook on Pulmonx Corp . (NASDAQ:LUNG) shares, increasing the price target to $8.00 from the previous $7.50, while maintaining a Neutral rating. The decision comes after Pulmonx reported a record quarter of revenue, surpassing consensus estimates and signaling a robust performance. According to InvestingPro data, the stock has seen a significant 10% decline over the past week, though the company maintains a "Good" overall financial health score of 2.57 out of 5. Current analysis suggests the stock may be slightly undervalued at current levels.
Pulmonx, known for its Zephyr valves used in the treatment of COPD, saw its revenue climb to $23.8 million, marking a 22.6% year-over-year growth excluding foreign exchange impacts. This figure notably exceeded the consensus estimate of $22.3 million. The company’s U.S. revenue rose by 15.7% to $15.9 million, while revenue outside the U.S. surged by 39.7% to $7.9 million. InvestingPro analysis reveals the company has maintained strong revenue momentum, with a 22% growth rate over the last twelve months and an impressive 5-year CAGR of 21%. Get access to detailed financial metrics and 6 additional ProTips for LUNG with an InvestingPro subscription.
Despite the revenue increase, Pulmonx experienced a slight compression in gross margins, which fell to 74.0% from 74.7% year-over-year, aligning with Street expectations. The adjusted EBITDA loss was reported at $7.5 million, an improvement over the $8.1 million loss from the previous quarter and better than the Street’s anticipated $11.4 million loss. The company maintains a strong liquidity position with a current ratio of 5.58, indicating robust ability to meet short-term obligations.
Looking ahead, Pulmonx provided guidance for 2025, projecting revenue between $96 million and $98 million, which would represent a growth of 16%-18% excluding foreign exchange impacts. This guidance brackets the consensus estimate of $97.7 million but is somewhat lower at the midpoint. Citi analysts suggest that given the company’s fourth-quarter performance, the initial 2025 guidance may be conservative and in line with management’s cautious forecasting approach.
Pulmonx’s management continues to focus on increasing physician adoption, exploring new indications, and expanding geographically. These efforts are part of a broader strategy to establish the Zephyr valve as the standard of care for COPD patients. Despite the positive developments, Citi maintains a Neutral/High Risk rating on Pulmonx shares but acknowledges the potential for growth by raising the price target to $8.00.
In other recent news, Pulmonx Corp reported its fourth-quarter 2024 financial results, showcasing a notable improvement in earnings and revenue. The company posted an earnings per share (EPS) of -$0.33, outperforming the anticipated -$0.4475, alongside a revenue of $23.8 million, marking a 23% year-over-year increase. Pulmonx’s international revenue experienced a robust 42% growth, while U.S. revenue rose by 16%, reflecting the company’s successful expansion strategies. Additionally, Pulmonx has provided a revenue guidance of $96-$98 million for 2025, indicating a projected growth rate of 16-18% in constant currency terms.
Analysts have responded positively to these developments, with the company’s strategic initiatives and product launches, like the ARISEAL, expected to further drive growth. The firm continues to focus on expanding its international presence and accelerating growth in the U.S. market in the latter half of 2025. Pulmonx’s commitment to innovation is evident in its efforts to refine commercial strategies, advance its AI-driven platform, and optimize its products. Despite ongoing net losses, the company’s effective cost management and operational strategies have contributed to an overall positive outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.