Lifeward stock initiated with buy rating at Litchfield Hills Research

Published 02/06/2025, 13:24
Lifeward stock initiated with buy rating at Litchfield Hills Research

On Monday, Litchfield Hills Research analysts initiated coverage on Lifeward (NASDAQ: LFWD) stock, assigning a Buy rating and a price target of $2.00. Currently trading at $1.23, the stock has attracted broader analyst interest, with consensus targets ranging from $3.00 to $13.00. The analysts highlighted Lifeward’s focus on advanced respiratory support and real-time blood monitoring solutions as key factors in their positive outlook.

Lifeward, a commercial-stage medical device company, offers the INSPIRA ART100 system, which has received U.S. FDA clearance for cardiopulmonary bypass and is approved for ECMO procedures outside the U.S. Analysts noted the innovative nature of Lifeward’s technology, which addresses the limitations of traditional mechanical ventilators.

The global market for mechanical ventilators was valued at $5.73 billion in 2024 and is expected to grow to $6.52 billion in 2025, with projections indicating it could reach $20.69 billion by 2034. Lifeward’s INSPIRA ART500 product, which allows patients to remain awake during treatment, is seen as a significant advancement in this market. The company has demonstrated strong revenue growth of 42% over the last twelve months, generating $25.4 million in revenue. InvestingPro data shows the company maintains a healthy current ratio of 2.18, indicating strong short-term liquidity.

Litchfield Hills Research emphasized Lifeward’s strong protection of its technology, which includes multiple patents in the U.S. and Israel, along with several pending filings in other countries. The analysts believe that the company’s technological moat and attractive valuation make its shares undervalued in the market.

The analysts’ assessment was based on a comparison of Lifeward’s current and future earnings, as well as the sales multiples of its industry peers. They concluded that these factors support their price target and Buy rating for Lifeward stock. According to InvestingPro analysis, Lifeward appears undervalued at current levels, with 8 additional ProTips available to subscribers. For comprehensive insights into Lifeward’s valuation and growth prospects, access the detailed Pro Research Report, part of the extensive analysis available for 1,400+ US stocks on InvestingPro.

In other recent news, Lifeward Ltd. has reported preliminary financial results for the first quarter of 2025, indicating approximately $5.0 million in revenue with operating expenses expected to range between $6.5 million and $6.7 million. These figures remain unaudited and are subject to further review. Additionally, the company has launched the ReWalk 7 Personal Exoskeleton in the United States, designed for individuals with spinal cord injuries, featuring advanced technology and user-friendly enhancements. The ReWalk 7 received FDA clearance in March 2025, allowing for broader accessibility following a Medicare reimbursement pathway established in 2024. Lifeward has also announced a leadership change, appointing Mark Grant as the new CEO, effective June 2025, as part of a planned transition. Meanwhile, H.C. Wainwright has reaffirmed a Buy rating and a $13 price target for Lifeward, citing confidence in the company’s growth strategy and the strong performance of its AlterG product. The company also disclosed the upcoming departure of Chief Sales Officer Charles Remsberg, effective May 30, 2025, classified as a termination without cause. These developments reflect Lifeward’s ongoing efforts to expand its market presence and enhance its product offerings.

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