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On Wednesday, Stifel analysts reiterated their Buy rating and $25.00 price target for Beta Bionics, Inc. (NASDAQ:BBNX), currently trading at $15.22 with a market cap of $652 million, following the company’s fourth-quarter performance in 2024. According to InvestingPro data, analyst consensus remains strongly bullish, with price targets ranging from $18 to $31. The analysts highlighted Beta Bionics’ significant commercial progress, a unique business model with advantageous margins, and a strong pipeline that could disrupt the market.
Beta Bionics’ fourth quarter in 2024 saw substantial growth, led by Multiple Daily Injection (MDI) therapy and a higher-than-anticipated mix of pharmacy sales. New patient starts in the quarter increased by 125%, totaling over 4,000, with 70% of these patients coming from MDI therapies, 20% from type 2 diabetes treatments, and a low-teens percentage obtaining the iLet device through pharmacy channels. InvestingPro analysis shows the company maintains a healthy current ratio of 4.62 and operates with moderate debt levels, though it’s not yet profitable with an EBITDA of -$39.37 million in the last twelve months. Notably, the pharmacy mix for the quarter exceeded Stifel’s projections of 10%.
Looking forward, Beta Bionics provided its first 2025 revenue guidance, which aligns with current consensus estimates. The company forecasts revenues to be between $80-85 million, which is consistent with Stifel’s and the consensus estimate of $83 million. Additionally, the company anticipates gross margins to exceed 50% and expects the full-year pharmacy mix to be greater than 20%. This guidance surpasses Stifel’s earlier estimate of a 13% pharmacy mix, indicating potential upside in the coming years.
The analysts emphasized that an increase in pharmacy distribution over a four-year period would likely lead to higher per-patient revenue for Beta Bionics. With these considerations, Stifel maintains their Buy rating and a $25.00 price target on the stock, reflecting confidence in the company’s future performance and market potential. Based on InvestingPro’s Fair Value analysis, the stock appears slightly overvalued at current levels. Subscribers can access 7 additional ProTips and a comprehensive Pro Research Report that provides deeper insights into Beta Bionics’ growth trajectory and market position.
In other recent news, Beta Bionics Inc . reported its Q4 2024 earnings, revealing a substantial 145% year-over-year increase in net sales, reaching $20.4 million. Despite this strong revenue growth, the company continues to face financial challenges, with an earnings per share (EPS) of -2.72. Beta Bionics plans to invest significantly in new product development, including the Patch Pump and Bihormonal Pump. Analysts have noted the company’s strategic focus on expanding its presence in the diabetes management market. Additionally, Beta Bionics has recently launched innovative products such as the Bionic Circle app and Color Eyelet pump, aimed at enhancing diabetes care. The company’s outlook for 2025 projects revenue between $80 million and $85 million, supported by increased pharmacy channel adoption and new patient starts. These developments reflect Beta Bionics’ commitment to advancing diabetes management technology and expanding its market reach.
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