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Investing.com - Roth/MKM raised its price target on Electromed (NYSE:ELMD) to $35.00 from $29.00 while maintaining a Buy rating on the stock. According to InvestingPro data, the company maintains an "EXCELLENT" financial health score, with particularly strong metrics in profitability and growth.
The price target increase follows Electromed’s better-than-expected financial results reported on August 26, 2025, and the company’s projection of double-digit revenue growth with expanded operating leverage for fiscal year 2026. The company has demonstrated strong execution with a robust gross profit margin of 77.55% and impressive return on equity of 17%.
Roth/MKM noted that Electromed shares remain "highly undervalued" trading at 10.5x EV/EBITDA compared to peers at 18.6x, citing the company’s market-leading position in the bronchiectasis space.
The firm highlighted Electromed’s strong earnings profile with approximately 12% GAAP net income margin and clean balance sheet as factors supporting the higher valuation.
Roth/MKM’s increased price target also reflects the company’s improving operating efficiencies in areas including customer relationship management, manufacturing, and personnel.
In other recent news, Electromed Inc . reported its fourth-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.25, exceeding the forecast of $0.22, marking a 13.64% surprise. Additionally, Electromed recorded a quarterly revenue of $17.4 million, which surpassed the projected $16.6 million by 4.82%. These results reflect a strong performance for the company in the last quarter. Furthermore, the positive earnings and revenue figures have drawn attention from various analysts. While specific upgrades or downgrades were not mentioned, the results are likely to influence analyst assessments. These developments are crucial for investors monitoring Electromed’s financial health and market performance.
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