Wells Fargo lowers Procept BioRobotics stock price target on delayed system replacements

Published 07/08/2025, 11:40
Wells Fargo lowers Procept BioRobotics stock price target on delayed system replacements

Investing.com - Wells Fargo (NYSE:WFC) has lowered its price target on Procept BioRobotics Corp (NASDAQ:PRCT) to $58.00 from $75.00 while maintaining an Overweight rating on the stock. The medical device company, currently trading near its 52-week low of $45.37, has seen its shares decline about 43% year-to-date despite posting strong revenue growth of 59% in the last twelve months.

The adjustment comes after management indicated it no longer expects any system replacements in the second half of 2025, revising previous expectations of approximately 10 replacements this year.

Wells Fargo noted that Procept had overestimated replacement demand since most of its installed base is only about three years old, while the company estimates system life at 5-7 years.

The firm expects Procept management to communicate its replacements and trade-in strategy when providing guidance for 2026, and currently models 10 replacements at a $350,000 average selling price next year.

Wells Fargo emphasized that the replacement outlook revision does not reflect on Procept’s visibility into its greenfield funnel, noting management continues to see a healthy pipeline while the hospital capital expenditure backdrop remains steady.

In other recent news, Procept BioRobotics reported its second-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of -$0.35, compared to the projected -$0.41. The company’s revenue also exceeded forecasts, achieving $79.2 million against the anticipated $76.12 million. Despite these positive financial results, Procept BioRobotics experienced a decline in its stock price in after-hours trading. These developments highlight the company’s ability to outperform market expectations in terms of earnings and revenue. Investors and analysts may find these results noteworthy as they reflect the company’s current financial health. The earnings and revenue figures are crucial for stakeholders assessing the company’s performance. This report provides insight into the company’s recent financial activities and market reception.

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