Kestra stock holds Buy rating at Stifel on positive physician feedback

Published 25/06/2025, 13:46
Kestra stock holds Buy rating at Stifel on positive physician feedback

Investing.com - Stifel maintained its Buy rating and $240.00 price target on Kestra Medical (TASE:BLWV) Technologies (NASDAQ:KMTS), currently trading at $17.64, following physician feedback on the company’s ASSURE wearable cardioverter-defibrillator (WCD). According to InvestingPro, the stock has surged nearly 14% in the past week, though analysis suggests the company may be overvalued at current levels.

The investment firm recently conducted interviews with 10 physicians who prescribe WCDs to assess adoption trends for Kestra’s ASSURE device. All interviewed doctors currently use the ASSURE system in their practices. With a market capitalization of $906 million and analyst targets ranging from $23 to $30, the medical device maker shows promising growth potential despite current unprofitability.

The research revealed stronger-than-expected utilization rates, with physicians writing approximately 60% of their WCD prescriptions for Kestra’s ASSURE device. These same doctors anticipate increasing their ASSURE utilization to approximately 68% over the next 12 months.

Kestra’s ASSURE WCD system, which received FDA approval in mid-2021, was designed to improve upon existing WCD technology by offering enhanced patient comfort, more accurate arrhythmia detection, and greater remote-monitoring capabilities.

Stifel’s current financial model projects Kestra will capture approximately 9% of all U.S. WCD-fittings in fiscal year 2025, with that share expected to grow to approximately 19% by the end of fiscal year 2028.

In other recent news, Kestra Medical Technologies reported a significant revenue increase for Q3 FY2025, achieving $15.1 million, marking an 82% growth compared to the same period last year. The company also provided a full-year revenue guidance of $58-$58.5 million, indicating a potential growth rate of 109-110%. Despite the impressive revenue figures, Kestra recorded a net loss of $21.8 million. Analysts at Stifel and Piper Sandler have maintained a Buy and Overweight rating, respectively, on Kestra’s stock, with price targets set at $28.00 and $27.00. The analysts highlighted Kestra’s strong market position and potential for expansion in the wearable cardioverter defibrillator (WCD) market. Additionally, Kestra announced the appointment of Conor Hanley to its Board of Directors and updated executive contracts to redefine terms related to executive termination. Kestra’s management emphasized the company’s focus on market expansion and product innovation, noting that the company is well-positioned to capture a larger share of the WCD market.

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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