Koru Medical stock price target raised, buy rating on strong period

On Friday, Craig-Hallum raised the stock price target for Koru Medical (TASE:PMCN) Systems Inc. (NASDAQ:KRMD) to $6.00, up from the previous target of $5.00, while maintaining a Buy rating on the stock.

The adjustment follows Koru Medical's pre-release of fourth-quarter results, which suggest another strong period for the company, this time achieving cash flow positivity. According to InvestingPro data, the stock has delivered an impressive 90.5% return over the past year, with analyst targets ranging from $4.50 to $7.00.

The analyst from Craig-Hallum highlighted the company's broad-based contributions from its domestic core SCIg, International operations, and progress in Novel Therapies as key drivers for the quarter.

The performance aligns with the firm's optimistic outlook for Koru Medical's continued growth in both domestic and international markets. InvestingPro analysis shows the company maintains a healthy financial position with a current ratio of 2.99 and operates with a moderate debt level. Get access to 8 more key ProTips and comprehensive analysis with an InvestingPro subscription.

With a focus on the year ahead, the analyst anticipates that Koru Medical will sustain above-market growth. This expectation is supported by the company's recent launch in Japan and plans for entering new markets. Moreover, significant advancements are expected in the company's product pipeline. The company has demonstrated strong execution with revenue growth of 11.6% over the last twelve months, though InvestingPro data indicates it's not yet profitable.

The second half of 2025 is set to see the introduction of a next-generation pump and consumables. Furthermore, the anticipated approval and release of the Freedom system for a rare disease biologic into the infusion clinic space are also on the horizon. These developments are poised to bolster Koru Medical's market position.

Investors can expect to receive initial guidance for 2025 in early March, which will be provided alongside the company's fourth-quarter earnings. This forthcoming information is likely to offer further insights into Koru Medical's strategic direction and financial health.

In other recent news, Koru Medical Systems reported a 23% increase in revenues for the fourth quarter of 2024, reaching $8.9 million. This positive performance led to a total annual revenue of $33.7 million, marking an 18% rise from the previous year. Canaccord Genuity analysts maintained a Buy rating on the company, noting a positive cash flow of $0.8 million for the quarter.

Despite not providing financial guidance for 2025, Canaccord Genuity and the Street had previously anticipated revenues of $38.2 million and $38.1 million respectively, which would represent a growth rate of approximately 15.6% to 15.8%.

In other developments, Koru Medical Systems reported substantial growth in its third quarter, with a 17% increase in year-over-year revenue to $8.2 million. The company also raised its full-year revenue guidance, indicating a positive outlook for continued growth.

Six drug launches are expected by 2026, including a rare disease biologic and an oncology biologic. These recent developments underscore Koru's commitment to growth and expansion in the medical device and therapies market.

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