Jefferies maintains Procept BioRobotics stock with $77 target

Published 04/03/2025, 13:26
Jefferies maintains Procept BioRobotics stock with $77 target

On Tuesday, Jefferies reaffirmed its Hold rating on Procept BioRobotics Corp (NASDAQ:PRCT) with a steady price target of $77.00, representing potential upside from the current trading price of $60.60. The confirmation follows discussions with key company executives, including CFO Kevin Waters (NYSE:WAT), CCO Sham Shiblaq, and Barry Templin, who is responsible for technical and clinical development. According to InvestingPro data, the company currently maintains a market capitalization of $3.32 billion and is considered overvalued based on its Fair Value analysis.

The firm highlighted several key points from the meeting. First, Procept BioRobotics management reiterated that the procedure environment is improving post-saline shortages. Additionally, the company’s management expects that fiscal year 2025 will see healthy utilization rates, with growth projections not heavily dependent on catch-up procedures. This optimism comes despite recent challenges, as InvestingPro data shows impressive revenue growth of 64.8% over the last twelve months, though the company remains unprofitable.

Management also conveyed a positive outlook on the company’s competitive positioning in the treatment of benign prostatic hyperplasia (BPH). While prostatic artery embolization (PAE) has been increasing its market share, the most significant impacts on Procept BioRobotics reportedly took place in early 2024.

Lastly, the company’s leadership expressed optimism about the opportunities in prostate cancer (PCa). The discussions with Jefferies suggest that Procept BioRobotics is positioning itself favorably within its market segments despite facing competition.

The Jefferies analyst’s remarks offer insights into Procept BioRobotics’ strategic outlook and market conditions. The maintained Hold rating and price target reflect the company’s current standing and future expectations as understood by Jefferies.

In other recent news, Procept Biorobotics Corp reported its fourth-quarter 2024 earnings, with revenue reaching $68.24 million, surpassing the forecast of $66.83 million. Despite the revenue beat, the company’s earnings per share (EPS) came in at -$0.35, slightly missing the expected -$0.34. The company experienced a 57% year-over-year increase in revenue for the quarter, driven by new product launches and FDA clearances. Procept Biorobotics anticipates a 43% revenue growth in 2025, projecting full-year revenue of $320 million. The company also expects to maintain a gross margin of 64.5% and forecasts an adjusted EBITDA loss of $35 million for the year. Analysts from various firms have noted the company’s strong performance, but the earnings miss has led to cautious optimism. The company continues to face challenges, such as saline shortages affecting procedure volumes, but remains focused on expanding its market share in the benign prostatic hyperplasia treatment sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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