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Investing.com - Stifel maintained its Buy rating and $28.00 price target on Kestra Medical (TASE:BLWV) Technologies (NASDAQ:KMTS), a medical technology company with a market capitalization of $836 million currently trading near its 52-week low of $14.02, following the company’s fiscal fourth-quarter 2025 results that exceeded expectations.
Kestra reported total revenue of $17.2 million for the quarter ended April 2025, representing 71% year-over-year growth and surpassing both Stifel and consensus estimates of $15.7 million. The strong performance was driven by 43% growth in ASSURE prescription volume and improvements in revenue cycle management. According to InvestingPro data, while the company operates with moderate debt levels, it currently trades at a high revenue multiple and is not yet profitable.
The medical technology company posted gross margins of 44.3% in the fourth quarter, slightly above analyst expectations of 43.8-43.9%. This margin improvement was attributed to a higher in-network patient mix and volume leverage related to the company’s rental model.
Looking ahead, Kestra provided initial fiscal 2026 sales guidance of $85 million, exceeding both Stifel’s estimate of $82.4 million and the Street consensus of $82.9 million. The guidance represents 42% revenue growth year-over-year, approximately in line with analyst growth expectations.
Stifel raised its estimates following the guidance, noting that management highlighted several positive factors during the earnings call that could help Kestra meet or potentially exceed its fiscal 2026 outlook. The broader analyst consensus remains highly bullish, with price targets ranging from $23 to $30. Get deeper insights and access to comprehensive financial analysis with InvestingPro, which offers additional exclusive tips and metrics for KMTS.
In other recent news, Kestra Medical Technologies reported a significant 71% increase in revenue for the fourth quarter of fiscal year 2025, reaching $17.2 million. Despite a negative earnings per share of -2.21, the company’s gross margin improved to 44.3%, up from 13.9% in the previous year. Kestra’s full-year revenue for fiscal year 2025 was $59.8 million, marking a 115% increase from the prior year. The company has set an ambitious revenue guidance of $85 million for fiscal year 2026, projecting a 42% increase. Analysts noted the ongoing challenges with Kestra’s adjusted EBITDA loss, which widened to $20.3 million in the fourth quarter. Kestra continues to focus on expanding its market presence and enhancing its revenue cycle management capabilities. The company’s strategic investments in commercial teams and product innovation are expected to support its growth plans.
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