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On Wednesday, Senseonics Holdings (NYSE:SENS) received a new Outperform rating from Mizuho (NYSE:MFG), accompanied by a price target of $2.00 per share. The firm's positive stance on the stock is based on encouraging survey data that suggests a growing adoption of continuous glucose monitoring (CGM) systems, as well as favorable feedback from physicians regarding the company's Eversense 365 product. According to InvestingPro data, two analysts have recently revised their earnings upward for the upcoming period, with analyst targets ranging from $0.30 to $2.50 per share.
Senseonics' Eversense 365, a long-term CGM system, is expected to capture significant market share in the United States. Following the expansion of its user label in September 2024 to include a 12-month usage period, the company is projected to achieve share gains of over 100 basis points over the coming years. The company's revenue is forecast to grow by 57% in FY2025, and its strong liquidity position is evidenced by a current ratio of 2.35.
The $2 price target set by Mizuho reflects a free cash flow (FCF) yield target of 7% based on their market share projections for Eversense 365. Additionally, Mizuho has indicated a more optimistic $4 price target for Senseonics, which hinges on the successful adoption of the company's next-generation solutions, such as the Gemini and Freedom systems. Want deeper insights? InvestingPro subscribers get access to 12+ exclusive ProTips and comprehensive financial analysis for SENS and 1,400+ other US stocks.
The Outperform rating suggests that Mizuho expects Senseonics stock to outperform the broader market or its sector, based on the anticipated success and increased market penetration of its Eversense 365 product and potential future innovations. With a market capitalization of $391 million and a beta of 0.86, the stock has shown lower volatility compared to the broader market.
In other recent news, Senseonics Holdings reported fourth-quarter revenue of $8.3 million for 2024, marking a significant increase from the third quarter's $4.3 million. The company's full-year revenue for 2024 was $22.5 million, closely aligning with the previous year's $22.4 million. Analysts at Stifel maintained a Buy rating with a $2.50 price target, noting that the adjusted gross margin of 28.3% exceeded expectations. H.C. Wainwright also reaffirmed a Buy rating, highlighting the successful reception of the Eversense 365 continuous glucose monitor system. Meanwhile, Raymond (NSE:RYMD) James maintained an Underperform rating, citing concerns over Senseonics' inconsistent execution and guidance for 2025 being below expectations.
The Eversense 365 product launch was a pivotal moment for Senseonics in 2024, leading to a 56% growth in its patient base to about 6,000 global patients. The company projects a potential doubling of this patient base in 2025. The successful FDA approval of the Eversense 365 system contributed to its market penetration, with 81% of new users switching from competing CGM systems. Senseonics' guidance for 2025 includes global net revenue of approximately $34-38 million and projected gross margins of 25-30%. The company plans to expand its product offerings with a 365-day CE mark submission and a targeted launch in the European Union in the second half of 2025.
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