Stifel maintains Buy on Senseonics, reiterates $2.50 target

Published 04/03/2025, 16:36
Stifel maintains Buy on Senseonics, reiterates $2.50 target

On Tuesday, Stifel analysts held a positive stance on Senseonics Holdings (NYSE:SENS), maintaining a Buy rating and a $2.50 price target for the company’s stock. The analysts highlighted that the company’s fourth-quarter revenue of $8.3 million was in line with Senseonics’ pre-announcement. The stock, currently trading at $0.66, has shown remarkable momentum with a 134.5% gain over the past six months, though InvestingPro data indicates high price volatility. Additionally, the adjusted gross margin (GM) of 28.3% exceeded both Stifel’s and the Street’s expectations, which were 17.5% and 18.2%, respectively.

The analysts also noted that they anticipate sustained gross margin upside through 2025. Senseonics’ revenue guidance for 2025, which ranges between $34 million and $38 million, aligns with Stifel’s estimate at the lower end. This represents a 60% year-over-year increase at the guidance’s midpoint. The growth is attributed to the ongoing traction of the 365-day product launch and the increasing number of prescribers, which currently stands at 2,400 in the United States.

For 2025, the company’s projected gross margins of 25-30% were above the previous estimates by Stifel and consensus, which were 20.0% and 23.5%, respectively. The pipeline for Senseonics includes a 365-day CE mark submission in the first quarter of 2025, a targeted launch in the European Union in the second half of 2025, and an expected Gemini IDE approval later this year.

In their commentary, Stifel analysts expressed that while their 2025 revenue estimate remains at the lower end of management’s provided range, the gross margin estimates for 2025 and beyond have been raised. This adjustment is due to the materialization of margin accretion from the 365-day product in the fourth quarter. The analysts believe that 2025 will mark a significant growth inflection driven by the 365-day product, setting up Senseonics for the future launches of Gemini and Freedom products. With a market capitalization of $385.18 million and current analyst consensus suggesting significant upside potential, investors can access detailed valuation metrics and growth projections through InvestingPro’s advanced analytics platform.

In other recent news, Senseonics Holdings, Inc. reported fourth-quarter earnings that surpassed analyst expectations. The company posted a loss of $0.02 per share, which was better than the anticipated $0.03 loss. Revenue for the quarter reached $8.3 million, exceeding the consensus estimate of $7.79 million and showing a 3.75% increase from the previous year. Senseonics also reported a significant growth in its patient base, which increased by 56% year-over-year to approximately 6,000 global patients. This expansion is attributed to the successful U.S. launch of the Eversense 365 CGM system, which received FDA approval. For the full year 2024, the company reported total revenue of $22.5 million, slightly up from $22.4 million in 2023. However, the gross profit declined to $0.5 million from $3.1 million, mainly due to one-time charges related to product transitions. Looking forward, Senseonics has provided guidance for 2025, expecting global net revenue of approximately $34-38 million and a projected increase in gross margins to between 25-30%.

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