Freedom Broker initiates coverage on Electromed stock with Buy rating

Published 01/07/2025, 18:50
Freedom Broker initiates coverage on Electromed stock with Buy rating

Investing.com - Freedom Broker initiated coverage on Electromed (NYSE:ELMD) with a Buy rating and a price target of $29.00 on Tuesday. According to InvestingPro data, the company currently trades at a market capitalization of $185 million and appears fairly valued based on InvestingPro’s Fair Value model.

The research firm described Electromed as a niche medical device company specializing in airway clearance therapy, primarily through its SmartVest High-Frequency Chest Wall Oscillation (HFCWO) system. The company maintains strong financial health with a current ratio of 5.19 and an impressive gross margin of 77.55%.

Freedom Broker noted that Electromed’s strategy to expand its direct sales force and increase physician awareness has driven accelerating adoption of its HFCWO technology.

The firm highlighted that over the past several years, Electromed has demonstrated growing profitability, primarily due to increased use of its devices.

This growth is specifically attributed to greater adoption within the underpenetrated bronchiectasis patient population, according to the research firm’s analysis.

In other recent news, Electromed, Inc. is set to join the Russell 2000 and 3000 indices following a preliminary list announcement by FTSE Russell. This inclusion is scheduled to take effect after the market closes on June 27, 2025. Being part of these indices is a notable achievement, indicating the company’s growth and its efforts to enhance shareholder value. The Russell 3000 Index includes the 3,000 largest U.S. stocks, while the Russell 2000 Index is a subset focusing on small-cap companies. Jim Cunniff, President and CEO of Electromed, highlighted the importance of this inclusion for institutional investors and its connection to index-linked financial products. The Russell US Indexes, which include these indices, serve as benchmarks for approximately $10.6 trillion in assets. This development reflects Electromed’s ongoing commitment to its stakeholders and the broader investment community.

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