H.C. Wainwright maintains Buy rating on Brainsway stock

On Monday, H.C. Wainwright analyst Raghuram Selvaraju maintained a Buy rating and a $16.00 price target on Brainsway (TASE:BWAY) (NASDAQ:BWAY) stock, representing a significant upside from the current price of $10.45. The endorsement follows BrainsWay’s recent announcement of a strategic equity financing deal with Stella MSO, LLC, a management services organization that operates over 20 mental health clinics in the United States and Israel. According to InvestingPro data, BWAY maintains strong financial health with a "GREAT" overall score, supported by robust liquidity metrics.

Last week, BrainsWay revealed its investment of $5 million into Stella MSO, gaining a minority stake with a preferred, annually compounding security. The agreement also includes a redemption feature for the shares acquired. This move represents the first in a series of planned minority-stake investments by BrainsWay in high-performing providers within the U.S. These investments are part of an initiative to boost access to and awareness of innovative mental health treatments like Deep TMS Therapy by supporting the interventional psychiatry sector. With a market capitalization of $205.53 million and impressive revenue growth of 26.86% in the last twelve months, the company appears well-positioned for this expansion strategy.

BrainsWay’s strategy allows the company to maintain its primary focus on the scientific and clinical development of its technology while providing top-tier support to all its customers. The company is expected to pursue two or three additional investments throughout the remainder of 2025, utilizing its available cash reserves. InvestingPro analysis reveals the company holds more cash than debt and maintains a strong current ratio of 5.03, suggesting ample liquidity for these planned investments. For deeper insights into BWAY’s financial position and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The company has reaffirmed its financial outlook, continuing to project sustained profitability and positive cash flow. BrainsWay has kept its operating income guidance at 3-4% and its adjusted EBITDA forecast at 11-12% for the year 2025. In the first quarter of 2025 alone, BrainsWay achieved a significant milestone by shipping 81 Deep TMS systems, marking a 42% increase from the same period in the previous year and setting a new record for the company. This growth trajectory is reflected in the stock’s impressive performance, with a year-to-date return of 10.82% and a remarkable one-year return of 62.27%.

Selvaraju’s reiteration of the Buy rating and the 12-month price target of $16 reflects confidence in BrainsWay’s strategic growth initiatives and their potential to enhance the company’s market position in innovative mental health treatments. This target aligns with the broader analyst consensus, which remains bullish on the stock’s prospects.

In other recent news, BrainsWay reported its first-quarter revenues for 2025 at $11.5 million, closely aligning with H.C. Wainwright’s projection of $11.3 million. The company achieved net earnings of $0.03 per share, consistent with estimates. H.C. Wainwright has maintained a Buy rating on BrainsWay, with a price target of $16.00, and adjusted its full-year 2025 revenue forecast to $51.6 million, up from $50.8 million. BrainsWay ended the quarter with $71.6 million in cash and equivalents, offering strategic flexibility for potential licensing deals. The firm projects full-year 2025 net earnings to be $0.19 per share, with expectations for strong growth in both revenue and earnings. Additionally, BrainsWay has invested $5 million in Stella Mental Health, securing a minority stake in the management services organization. This investment is part of BrainsWay’s strategy to enhance the reach of its Deep Transcranial Magnetic Stimulation Therapy. The company is also preparing to launch its next-generation Deep TMS 360 system and is progressing with a U.S. multi-center trial for an accelerated Deep TMS protocol.

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