Procept BioRobotics stock maintains Buy rating at BofA despite Medicare cuts

Published 15/07/2025, 12:06
Procept BioRobotics stock maintains Buy rating at BofA despite Medicare cuts

Investing.com - BofA Securities has reiterated its Buy rating and $84.00 price target on Procept BioRobotics Corp (NASDAQ:PRCT), currently trading at $58.17, following the release of Medicare’s proposed physician fee schedule for 2026. According to InvestingPro data, analyst consensus remains strongly bullish with price targets ranging from $60 to $90.

The Center for Medicare and Medicaid Services (CMS) released its proposed physician fee schedule which includes payment reductions for BPH procedures, with Procept’s Aquablation therapy facing an approximately 28% reduction in physician fees.

BofA notes that most resective BPH procedures will see payment cuts averaging more than 20%, which the firm believes was already anticipated by market participants.

Despite the payment reduction, BofA does not expect the cuts to significantly impact Procept’s business momentum, citing that Aquablation adoption has been driven by clinical results and standardization capabilities across various prostate sizes rather than physician compensation.

The firm also highlighted that urologists will continue to receive roughly equivalent payment whether performing Aquablation or alternative resective BPH procedures such as TURP or Greenlight, addressing investor concerns about potential adoption slowdowns if Aquablation reimbursement fell below competing procedures.

In other recent news, Procept BioRobotics Corp reported a strong financial performance for the first quarter of 2025, exceeding both earnings per share (EPS) and revenue forecasts. The company achieved a revenue of $69.2 million, surpassing the anticipated $65.43 million, and reported an EPS of -$0.45, which was better than the forecasted -$0.4907. This represents a significant year-over-year revenue growth of 55%. Leerink Partners maintained an Outperform rating on Procept BioRobotics despite slightly adjusting the price target from $91 to $90, reflecting confidence in the company’s growth potential and its recent revenue beat in the first quarter. Meanwhile, Truist Securities upheld its buy rating, highlighting positive utilization trends and a strong capital pipeline that could lead to potential beat-and-raise scenarios throughout the year. Oppenheimer initiated coverage with a Perform rating, noting the company’s pioneering technology and conservative fiscal year 2025 revenue guidance of $323 million. The firm’s analysis suggested that Procept BioRobotics might exceed expectations in the upcoming quarter. These developments underscore the company’s strategic positioning and robust performance in the medical technology sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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