Raymond James maintains Underperform on Senseonics stock

Published 04/03/2025, 17:00
Raymond James maintains Underperform on Senseonics stock

On Tuesday, Raymond (NSE:RYMD) James reaffirmed their Underperform rating on Senseonics Holdings (NYSE:SENS) shares, currently trading at $0.69. According to InvestingPro data, the stock has shown remarkable momentum with a 134.5% surge over the past six months, despite analysts maintaining a cautious stance. The firm adjusted their position following the company’s fourth quarter results, which had been largely anticipated due to prior announcements. The performance of the Eversense 365 product was noted as encouraging, but it met rather than exceeded the expectations set during the American Diabetes Association (ADA) 2024 conference.

Senseonics’ guidance for 2025 was reported to be below the expectations of Raymond James, prompting the firm to revise their estimates downward. Despite the anticipated growth of Eversense 365 in 2025, concerns were expressed regarding the company’s inconsistent execution, leading the analysts to maintain their cautious rating on the stock.

The analyst’s statement highlighted the alignment of Eversense 365’s uptake with projections made at the ADA 2024, without indicating a significant outperformance. This tempered view suggests that while the product is gaining traction, it has not yet reached a point of exceptional growth that would alter the firm’s outlook on Senseonics’ stock.

Looking ahead, Raymond James anticipates that Eversense 365 will continue to gain ground in the market throughout 2025. Nevertheless, their outlook remains tempered due to past performance issues, which have cast doubt on the company’s ability to execute its business strategy effectively. Despite the cautious outlook, other analysts maintain more optimistic price targets ranging from $2.00 to $2.50, suggesting significant potential upside from current levels. Access the complete Pro Research Report for Senseonics, along with 1,400+ other detailed company analyses, exclusively on InvestingPro.

The Underperform rating by Raymond James indicates a conservative perspective on Senseonics’ future performance, signaling to investors that the firm advises caution when considering the company’s shares. This rating is particularly significant in light of the company’s recent financial disclosures and future projections.

In other recent news, Senseonics Holdings reported fourth-quarter earnings that exceeded analyst expectations, with a loss of $0.02 per share compared to the expected $0.03 loss. Revenue for the quarter was $8.3 million, surpassing the consensus estimate of $7.79 million and marking a 3.75% increase from the same period last year. The company also noted a significant 56% year-over-year growth in its global patient base, attributed to the launch of the Eversense 365 CGM system. For the full year 2024, Senseonics reported total revenue of $22.5 million, slightly higher than the previous year’s $22.4 million. However, the gross profit for 2024 was $0.5 million, a decrease from $3.1 million in 2023, due to one-time transition charges. Looking ahead, the company expects 2025 global net revenue to be between $34 million and $38 million, with anticipated growth in the patient base and increased gross margins. Stifel analysts maintained a Buy rating on Senseonics, with a $2.50 price target, noting that the company’s fourth-quarter revenue aligned with pre-announcements and that gross margins exceeded expectations. They also highlighted potential growth driven by the 365-day product and future launches of Gemini and Freedom products.

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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