Senseonics stock initiated with Buy rating at Lake Street Capital

Investing.com - Senseonics Holdings (NYSE:SENS) stock, currently trading at $0.57, received its first coverage from Lake Street Capital Markets on Thursday, with the research firm assigning a Buy rating and a $1.00 price target. According to InvestingPro data, analysts’ targets for the stock range from $1.25 to $2.00, suggesting significant upside potential.

Lake Street Capital initiated coverage following what it described as a "decent quarter and mixed guide" for the continuous glucose monitoring technology company. The firm noted that pre-provision net revenue (PPNR) was in line with expectations, with higher net interest income offsetting slightly softer fees and expenses. InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 6.88, though it operates with moderate debt levels.

Credit performance exceeded expectations with better-than-anticipated provisions and an 11% decline in non-performing loans (NPLs), according to the research note. However, end-of-period loan and deposit trends were mixed, with loans missing expectations despite the company previously indicating declining utilization in the second quarter.

The research firm viewed Senseonics’ outlook as "decent," suggesting in-line PPNR for the third quarter and modest upside potential in the fourth quarter. This upside is expected to be driven by higher fees and slightly higher net interest income.

Lake Street Capital acknowledged that investor positioning in Senseonics has improved in recent weeks, potentially raising performance expectations. The firm indicated that market focus would likely center on loan growth and fee increases through the remainder of 2025.

In other recent news, Senseonics Holdings reported mixed financial results for Q1 2025. The company exceeded earnings per share expectations with an actual EPS of -$0.02 compared to the forecasted -$0.03, but revenue fell short at $6.3 million against a $6.92 million projection. Senseonics has launched a public stock offering and a private placement, with Abbott Laboratories (NYSE:ABT) agreeing to purchase up to $25 million of common stock, contingent on the public offering’s closure. TD Cowen initiated coverage on Senseonics with a Buy rating, citing the company’s growth potential with its Eversense 365 continuous glucose monitoring system. H.C. Wainwright raised its price target for Senseonics to $1.40, maintaining a Buy rating and highlighting the company’s plans to expand its Eversense patient base significantly by 2027. The firm also updated its revenue forecasts to $75.6 million in 2026 and $118.4 million in 2027. Senseonics aims to achieve operational break-even by the end of 2027, contingent on its growth trajectory.

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