Laidlaw sets Lifeward stock with a Buy rating, $10 target

On Monday, Lifeward shares received a positive outlook from Laidlaw, as analysts initiated coverage with a Buy rating and a price target set at $10.00. Currently trading at $1.40, the stock appears undervalued according to InvestingPro Fair Value metrics. The firm highlighted Lifeward’s focus on rehabilitation technology, specifically its two leading products: the ReWalk personal exoskeleton and the AlterG anti-gravity systems. The ReWalk device, which requires a prescription, allows spinal cord injury patients to walk, while the AlterG system uses a pressurized air chamber to enable unrestricted, pain-free movement for patients and athletes. Analyst consensus remains bullish, with price targets ranging from $6 to $13.

Analysts at Laidlaw pointed out that one of the primary factors that could drive Lifeward’s share appreciation in the near term is the potential for a rapid increase in ReWalk’s revenue, beginning in 2025. This optimism is underpinned by the recent determination of the ReWalk Medicare payment rate by the Centers for Medicare & Medicaid Services (CMS), which is expected to streamline the reimbursement process and establish a stable selling price for the ReWalk device.

The ReWalk exoskeleton is considered a superior product in the medical exoskeleton market, which, combined with a significant unmet need, suggests a strong commercial and revenue outlook for Lifeward. While the company maintains a healthy current ratio of 2.65 and holds more cash than debt on its balance sheet, InvestingPro subscribers can access 12 additional key financial insights about Lifeward’s market position and growth potential. Laidlaw’s analysis indicates that the company’s shares are currently undervalued, providing an opportunity for growth as Lifeward works to commercialize its lead products and capitalize on the recent CMS payment rate determination.

Lifeward expects the less cumbersome reimbursement procedure to facilitate sales of the ReWalk device at a well-established and stable price. This development is seen as a crucial step in accelerating the company’s revenue growth and enhancing its market position in the MedTech industry.

Investors will be watching closely as Lifeward aims to leverage these advancements and the anticipated revenue ramp-up to improve its financial performance in the coming quarters. The company’s focus on innovative rehabilitation technologies and the recent positive developments regarding reimbursement are expected to play a significant role in its trajectory.

In other recent news, Lifeward Ltd., a medical technology company, has made significant strides in their operations. Lifeward has partnered with BARMER, Germany’s second-largest health insurer, to establish a reimbursement process for its ReWalk Personal Exoskeletons. This agreement potentially benefits nearly half of those with statutory health insurance in Germany, providing streamlined access to Lifeward’s exoskeleton technology for individuals with spinal cord injuries. Lifeward’s CEO, Larry Jasinski, is hopeful that this partnership will encourage wider insurance coverage for exoskeletons in Germany and internationally.

In another development, Lifeward announced a registered direct offering and concurrent private placement, with the intent to sell 1,818,183 ordinary shares at $2.75 per share. This move aims to raise approximately $5 million in gross proceeds before deductions for the placement agent’s fees and other expenses. H.C. Wainwright & Co. is serving as the exclusive placement agent for the transaction. The company plans to use the net proceeds for commercial efforts, working capital, and general corporate purposes. Both of these developments mark recent progress in Lifeward’s operations.

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