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On Friday, H.C. Wainwright reiterated its Buy rating for EDAP TMS S.A. (NASDAQ:EDAP) with a consistent price target of $19.00, representing significant upside from the current price of $2.22. According to InvestingPro data, analyst consensus remains bullish with targets ranging from $4.50 to $19.00. The firm’s analyst highlighted the company’s report from November 7, which detailed fourth-quarter financials for 2024 and provided a corporate update. EDAP TMS is currently advancing its Focal One technology, with a strategic focus on new applications in pancreatic cancer and benign prostate hyperplasia (BPH), in addition to ongoing development for endometriosis. The company maintains a strong financial position with more cash than debt and a healthy current ratio of 2.18, though InvestingPro analysis indicates rapid cash burn requires monitoring.
EDAP TMS is actively enrolling and treating patients in the Phase 1/2 PULS multicenter study that is evaluating High-Intensity Focused Ultrasound (HIFU) for the treatment of locally advanced and unresectable pancreatic tumors. The Phase 1 segment of the study aims to assess the tolerance to the intervention, while the Phase 2 segment is designed to evaluate the efficacy of the HIFU treatment.
In parallel, the company is also conducting a Phase 1/2 multicenter study for BPH, where HIFU is under investigation. The initial phase of this study is focused on defining the optimal treatment parameters, and it will be followed by an expansion phase to assess the safety and efficacy of HIFU in BPH treatment.
H.C. Wainwright’s analyst expressed optimism regarding the potential outcomes of the BPH study. Success in this trial could assist EDAP TMS in securing a clear label from the FDA, which would be a significant step in expanding the market for its Focal One technology in prostate treatments. Despite posting revenue growth of 12.17% in the last twelve months, the company remains in investment mode. The firm stands by its Buy rating and 12-month price target, indicating confidence in the company’s growth trajectory and the development of its therapeutic technologies. For deeper insights into EDAP’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, EDAP TMS SA reported a revenue increase of 3.6% year-over-year for Q4 2024, reaching €20.3 million. Despite a net loss of €1.9 million, this marks an improvement from the previous year’s €5 million loss, highlighting the company’s strategic advancements in medical technology. The company experienced a 15.7% increase in HIFU revenue, amounting to €23.8 million, which contributed to a full-year revenue of €64.1 million, up 6.1% from 2023. EDAP’s stock performance reflected these positive results, although specific figures are not detailed here.
Furthermore, EDAP anticipates HIFU revenue growth of 15-25% in 2025, driven by increased technology adoption and market expansion. The company plans to reduce its focus on non-core ESWL and distribution businesses, projecting a decline of 20-25% in these areas. In regulatory developments, EDAP’s Focal One robotic HIFU received a CE Mark for treating deep infiltrating endometriosis, which permits a controlled market entry in relevant regions. EDAP’s strategic moves and financial results are closely watched by firms such as Jefferies and H.C. Wainwright, reflecting ongoing interest and analysis in the company’s market trajectory.
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