Stifel maintains Kestra stock buy rating, $28 target post-IPO

On Tuesday, Stifel analysts reaffirmed their positive stance on Kestra Medical (TASE:BLWV) Technologies , maintaining a Buy rating and a $28.00 price target for the company’s shares, traded under (NASDAQ:KMTS). According to InvestingPro data, analyst targets for KMTS range from $24 to $30, with the stock currently trading at $22.98. The company has shown strong momentum, gaining over 9% in the past week. Kestra, which recently went public on March 6, reported fiscal third-quarter 2025 results that met the expectations set by both Stifel and the consensus.

In its first quarterly report since becoming a publicly traded entity, Kestra posted revenues of $15.1 million, a significant increase of 82% compared to the same period the previous year. The growth was driven by the company’s ASSURE wearable cardiac defibrillator (WCD), which saw prescription numbers rise approximately 51% year-over-year. This surge in prescriptions is indicative of Kestra’s expanding market share and its success in establishing new accounts. With a market capitalization of $1.22 billion, InvestingPro analysis shows the company is expected to maintain strong growth, with revenue forecast to increase by 110% this fiscal year.

Kestra’s management team highlighted the significant opportunity for further expansion, noting that the company’s current reach of approximately 550 accounts represents just 20% of U.S. hospitals that prescribe WCDs. This underscores the potential for Kestra to increase its presence in the market. While not yet profitable, InvestingPro data reveals the company maintains strong liquidity with a current ratio of 2.81, providing financial flexibility for its expansion plans.

The company also achieved a gross margin of 43.4%, an increase of nearly 400 basis points quarter-over-quarter. This improvement in profitability was attributed to a higher mix of in-network patients and the benefits of volume leverage related to its rental model. Notably, Kestra anticipates no adverse effects on its gross margin from the recent tariff announcements by the U.S. government, as the company relies on domestic manufacturing partners. Based on InvestingPro’s Fair Value analysis, the stock appears to be trading above its intrinsic value, suggesting investors should carefully monitor valuation metrics. Get access to 7 additional ProTips and comprehensive financial analysis through InvestingPro’s detailed research report.

In other recent news, Kestra Medical Technologies reported a substantial revenue increase for Q3 FY2025, reaching $15.1 million, which marks an 82% growth compared to the same period last year. The company has set a robust full-year revenue guidance of $58-$58.5 million, indicating a potential growth of 109-110%. Despite these positive revenue figures, Kestra reported a net loss of $21.8 million. Piper Sandler maintained an Overweight rating on Kestra Medical, with a price target of $27, highlighting the company’s strong position in the wearable cardioverter defibrillator market. Kestra’s Assure product is noted for its superior performance, contributing significantly to market growth. The company is well-capitalized following its recent initial public offering, which has provided the necessary funds to pursue its growth strategy. Management has assured that Kestra’s operations are not impacted by tariffs, preserving its gross margins. The company is expanding its sales territories and enhancing its product offerings to capture a significant portion of the market.

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