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On Tuesday, Lake Street Capital Markets adjusted their outlook on shares of Clearpoint Neuro Inc. (NASDAQ:CLPT) by increasing the price target to $30.00, a significant rise from the previous target of $17.00. The firm continues to recommend a Buy rating for the company's stock.
Lake Street's analysts highlighted the robust performance of Clearpoint Neuro's core business, along with the substantial progress made by its partner business, which has seen key developments that could speed up its entry to the market. They noted that while the stock has already experienced considerable growth, the full potential of the partner business might still be underestimated by investors.
According to Lake Street, the valuation of Clearpoint Neuro should consider both the expected $37 million in core revenue for 2025 and the potential $100 million in revenue from new drug and device partnerships.
The analysts emphasized the importance of the company's partner products, stating that the success of just one out of the 50 products, including seven that are on a fast track, could generate over $100 million in combination therapy revenue. This would come with high gross margins exceeding 70% and minimal additional operating expenses.
The firm anticipates that over time, a range of approved combination therapies will be available on the market, creating numerous opportunities for growth for Clearpoint Neuro. In light of these factors, Lake Street reaffirmed their positive stance on the stock and raised the price target to reflect these developments.
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