JMP reiterates Market Outperform rating on Neuronetics stock ahead of Q2 earnings

Published 28/07/2025, 10:20
JMP reiterates Market Outperform rating on Neuronetics stock ahead of Q2 earnings

Investing.com - JMP Securities has reiterated its Market Outperform rating and $7.00 price target on Neuronetics (NASDAQ:STIM) ahead of the company’s second-quarter earnings report scheduled for August 5, 2025. The target represents significant upside potential, though InvestingPro analysis suggests the stock is currently trading above its Fair Value, with the stock already up 179% year-to-date.

The first quarter of 2025 represented Neuronetics’ first full quarter incorporating Greenbrook’s financial results following the merger completion in December 2024. JMP indicates that Neuronetics’ fiscal year 2025 performance will largely depend on integration progress, top-line utilization growth, and operational efficiencies. The company maintains strong liquidity with a current ratio of 2.44, indicating healthy short-term financial positioning. InvestingPro data reveals 12 additional key insights about STIM’s financial health and growth prospects.

On July 15, alongside announcing a new CFO, Neuronetics reaffirmed its second-quarter and full-year 2025 sales guidance. The company also maintained its expectation to achieve positive cash flow by the third quarter of 2025.

JMP does not anticipate any significant surprises in the upcoming quarterly results based on the recent guidance confirmation.

The research firm suggests that post-earnings share price performance will likely be influenced by management commentary regarding Neuronetics’ SPRAVATO rollout, treatment session utilization, and progress toward free cash flow goals for fiscal year 2025.

In other recent news, Neuronetics reported its first-quarter 2025 earnings, which showed a net loss of $0.21 per share, falling short of analyst expectations of a $0.19 loss per share. Despite this, the company experienced a strong revenue increase, reaching $32 million and surpassing forecasts of $29.07 million. This discrepancy between earnings and revenue highlights investor concerns about profitability. Additionally, Neuronetics is set to join the Russell 3000® and Russell 2000® indexes effective June 30, 2025, following the annual reconstitution by FTSE Russell. This inclusion could potentially enhance Neuronetics’ visibility among institutional investors. At the company’s recent Annual Meeting of Stockholders, all director nominees were elected to serve one-year terms until 2026, with over 81% of eligible shares represented. These developments reflect a period of significant activity for Neuronetics, with both financial and strategic implications.

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