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On Monday, Lake Street Capital Markets began coverage on Hyperfine Inc. (NASDAQ:HYPR), assigning the medical technology company a Buy rating and setting a price target of $1.50. The new target reflects a positive outlook on the company’s future, particularly regarding its Swoop System, which is aimed at becoming a standard in brain health care. With the stock currently trading at $0.85 and a market cap of $65.76 million, InvestingPro analysis suggests the stock is currently undervalued, adding weight to Lake Street’s bullish stance.
Lake Street analysts expressed confidence in Hyperfine’s foundation and its potential to alleviate MRI bottlenecks, thus facilitating improved patient care directly at the bedside. The analysts noted that while initial verification of the Swoop System has been solid, the anticipated growth inflection for Hyperfine is expected to come from exploring new indications for the device’s use and expanding into new geographic markets. This expansion potential is supported by the company’s strong revenue growth of 16.84% over the last twelve months and projected revenue growth of 24% for fiscal year 2025.
The analysts also highlighted the company’s valuation, mentioning that Hyperfine’s shares are currently trading at 1.3 times the projected 2026 enterprise value to sales (EV/S). They believe that the market has not fully appreciated the growth opportunities available to the company.
Furthermore, following a January restructuring that led to cost reductions in research and development, Hyperfine now estimates that it has sufficient cash to operate through 2026. The restructuring was aimed at enhancing commercial execution. The company maintains a healthy current ratio of 6.15 and impressive gross profit margin of 45.7%. InvestingPro rates Hyperfine’s overall financial health as ’FAIR’, with detailed analysis available in the comprehensive Pro Research Report, which provides deeper insights into the company’s financial position and growth prospects. Lake Street analysts are optimistic that Hyperfine will experience growth, margin improvement, and leverage, which in turn will propel the stock price upward.
Hyperfine Inc.’s focus on the Swoop System and the strategic steps it has taken to streamline operations and expand its market presence are key factors contributing to the positive rating and price target set by Lake Street Capital Markets. These developments, combined with the company’s strong financial metrics and growth trajectory, make it an interesting stock to watch.
In other recent news, Hyperfine Inc. reported its fourth-quarter earnings, revealing a revenue of $2.3 million, which fell short of the $3.3 million forecast and marked a 14% year-over-year decline. Despite the revenue miss, Hyperfine met its earnings per share forecast of -$0.14 for the quarter. Full-year revenue reached $12.9 million, a 17% increase from the previous year, alongside a 24% rise in gross profit and a gross margin expansion of 300 basis points. Looking ahead, Hyperfine anticipates 2025 revenue growth between 20% to 30%, with a stronger second half expected. The company also announced plans to launch new software in mid-2025 to enhance image quality and expand market reach. Jefferies adjusted its outlook on Hyperfine, raising the stock price target to $1.20 while maintaining a Hold rating. Hyperfine’s management expressed confidence in their financial runway, projecting sufficient cash to continue operations into the second half of 2026.
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