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On Wednesday, H.C. Wainwright expressed continued confidence in Myomo Inc . (NYSE: NYSE:MYO), raising its price target to $9.50 from the previous $7.50 while maintaining a Buy rating on the stock. The revised target follows Myomo’s announcement of its fourth-quarter financial results for 2024, which showed an impressive year-over-year revenue increase and a narrower-than-expected net loss. The market has responded positively, with the stock showing a remarkable 25% gain over the past week and a 54% return over the last year, according to InvestingPro data.
Myomo reported a record total revenue of $12.1 million for the quarter, marking a significant 154% increase from the same period last year and surpassing the consensus estimate of $9.9 million. The company’s net loss stood at $0.01 per share, which was more favorable than the consensus estimate of a $0.02 per share loss. The positive outcome was attributed to several factors, including a rise in the average selling price driven by an influx of Medicare patients and a 106% year-over-year surge in total revenue units. This performance contributes to the company’s strong trailing twelve-month revenue growth of 36%.
The company’s gross margin also saw improvement, climbing to 71% in the fourth quarter of 2024 from 65% in the same quarter of the previous year. A notable achievement for Myomo during the quarter was the generation of positive free cash flow amounting to $2.5 million, setting another record for the company.
Ending the quarter with $25 million in cash and cash equivalents, Myomo is well-positioned to fund its operations for the foreseeable future. With a current ratio of 2.1, the company’s liquid assets comfortably exceed its short-term obligations. The financial stability and recent performance have reinforced H.C. Wainwright’s positive outlook, leading to the increased price target and reiterated Buy rating for the company’s stock. While InvestingPro analysis suggests the stock may be trading above its Fair Value, investors can access 10+ additional exclusive ProTips and comprehensive valuation metrics through the Pro Research Report.
In other recent news, Myomo Inc. reported its fourth-quarter 2024 earnings, exceeding expectations with an earnings per share (EPS) of -$0.01 compared to the forecast of -$0.02. The company’s revenue reached $12.1 million, surpassing the anticipated $9.9 million, marking a 154% year-over-year increase. Myomo also achieved its first positive Adjusted EBITDA of $200,000, reflecting improved operational efficiency. Looking forward, Myomo projects revenue between $50 million and $53 million for 2025, with expectations of continued growth driven by expansion in Medicare and international markets.
In addition to strong earnings, Myomo’s revenue guidance for 2025 suggests a growth rate of 54% to 66%. The company aims for positive operating cash flow by the fourth quarter of 2025. Myomo is also focusing on expanding its market presence through increased advertising spend and strategic partnerships. Analysts from Craig Hallum and AGP have shown interest in Myomo’s growth strategy, particularly in the O&P channel, which is expected to contribute meaningfully to revenue in 2025. Myomo’s international business, especially in Germany, continues to perform well, generating over $1 million in profitable revenue for the quarter.
These developments reflect Myomo’s ongoing efforts to enhance its market position and capitalize on the growing demand for its products. The company’s strategic focus includes engaging with orthotics and prosthetics clinics and addressing challenges with Medicare Advantage claim denials. Myomo’s leadership has emphasized the importance of innovation and expansion to sustain its growth trajectory in the coming years.
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