Ekso Bionics stock target cut to $4 by H.C. Wainwright

Published 06/05/2025, 13:00
Ekso Bionics stock target cut to $4 by H.C. Wainwright

On Tuesday, H.C. Wainwright adjusted its price target for Ekso Bionics (NASDAQ:EKSO) shares, reducing it significantly from $9.00 to $4.00, while still maintaining a Buy rating on the stock. The firm’s analyst cited a decline in enterprise revenue as the primary reason for the adjustment, noting that customer budget cuts had impacted sales. According to InvestingPro data, the stock is currently trading at $0.48, down nearly 65% over the past year, though analysis suggests the stock may be undervalued at current levels.

Ekso Bionics reported a 10% year-over-year decrease in total revenue for the first quarter of 2025, with figures dropping to $3.4 million from $3.8 million in the same period the previous year. This performance fell short of the consensus expectation of $4.6 million. The shortfall was largely attributed to decreased enterprise sales of the EksoNR, which was somewhat mitigated by an uptick in sales of the Ekso Indego Personal. InvestingPro analysis reveals the company’s trailing twelve-month revenue stands at $17.93 million, with a concerning negative EBITDA of $8.85 million.

According to the company’s management, some of Ekso’s customers pointed to budget constraints linked to the prevailing economic uncertainty as the reason for not proceeding with purchases of devices in the first quarter. The long-term effects of capital budget cuts on Ekso’s revenue stream remain uncertain. InvestingPro subscribers can access 8 additional key insights about Ekso’s financial health and market position, including detailed cash flow analysis and debt metrics.

Despite the downturn, Ekso Bionics anticipates a recovery in enterprise sales from integrated delivery networks (IDN) in the current year, following a slump in 2024. However, the firm’s analyst believes that any rebound is contingent upon an improvement in the broader macroeconomic climate.

H.C. Wainwright’s report also indicates that Ekso Bionics’ management is aware of the challenges ahead. The company may consider implementing cost-saving initiatives to mitigate the impact on their financial results if necessary.

In other recent news, Ekso Bionics Holdings Inc reported a larger-than-expected loss for the first quarter of 2025. The company’s earnings per share came in at -$0.12, missing the analysts’ forecast of -$0.08. Revenue for the quarter was $3.4 million, which was significantly below the expected $4.8 million. Despite the revenue decline from $3.8 million in the same period last year, Ekso Bionics maintained a gross margin of 54% with a gross profit of $1.8 million. The company noted challenges such as capital budget constraints affecting sales and ongoing efforts to expand its distribution network. Ekso Bionics continues to focus on its enterprise health segment, which is expected to contribute 75-80% of total revenue. The company is also working on increasing its presence in the personal health segment. CEO Scott Davis expressed optimism about leveraging strategic partnerships to navigate complexities in coding, coverage, and payment processes.

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