Piper Sandler maintains $27 target on Kestra Medical stock

On Tuesday, Piper Sandler confirmed its positive stance on Kestra Medical (TASE:BLWV) Technologies (NASDAQ:KMTS), maintaining an Overweight rating and a $27.00 price target for the company’s shares. The endorsement follows Kestra Medical’s inaugural quarterly earnings report since becoming a publicly-traded entity. The stock, currently trading at $23.83, has shown strong momentum with a 9.31% gain over the past week, according to InvestingPro data.

The company’s revenue for the quarter aligned with previous statements from the company, and the provided outlook for the upcoming year met analysts’ expectations. With a market capitalization of $1.22 billion and a healthy current ratio of 2.81, Kestra Medical appears well-positioned financially. Piper Sandler’s analysis highlighted Kestra Medical’s position in the wearable cardioverter defibrillator (WCD) market, where it currently holds approximately a 6% share overall. Notably, in the top 50 hospitals, Kestra’s market share exceeds 45%, which Piper Sandler views as a strong indicator of the company’s potential for market expansion.

Kestra’s ASSURE product is credited with contributing to market growth, offering superior performance in efficacy, wear time, and false alarm rates. The recent initial public offering (IPO) has also equipped Kestra with the necessary capital to pursue their growth strategy effectively. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks.

Management has further indicated that Kestra is not affected by tariffs, ensuring that gross margins remain unimpacted. Piper Sandler’s outlook suggests that Kestra Medical is well-positioned to capture a significant portion of the WCD market in a competitive duopoly over the next few years.

In other recent news, Kestra Medical Technologies reported a notable revenue increase for Q3 FY2025, achieving $15.1 million, which marks an 82% growth compared to the previous year. The company has set ambitious full-year revenue guidance between $58 million and $58.5 million, suggesting a potential growth rate of 109-110%. Despite these impressive revenue figures, Kestra experienced a net loss of $21.8 million. The company’s Assure WCD platform continues to show promising clinical results, contributing to the revenue surge. The positive financial performance is largely attributed to the adoption of the Assure Next (LON:NXT) Generation Wearable Cardioverter Defibrillator platform and the expansion of sales territories. Furthermore, Kestra’s prescription growth increased by 51% in Q3, reflecting continued market share gains. Analysts from Bank of America Securities and Piper Sandler have shown interest in Kestra’s strategic growth initiatives, particularly regarding the expansion of its sales force and revenue cycle management. These developments highlight Kestra’s focus on addressing the large and growing market for wearable cardioverter defibrillators.

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