U.S. stocks lower as investors rotate out of tech ahead of Jackson Hole
Investing.com - RBC Capital has reduced its price target on Zynex Inc. (NASDAQ:ZYXI) to $3.00 from $4.00 while maintaining a Sector Perform rating on the medical technology company’s stock. The stock, currently trading at $2.19, has fallen nearly 78% over the past year, with InvestingPro data showing it’s trading well below its 52-week high of $10.62.
The price target reduction follows Zynex’s first-quarter revenue miss and the company’s decision not to issue guidance for 2025, creating uncertainty about its financial outlook.
RBC Capital noted that Zynex is experiencing payment volatility from former Tricare payers and, more significantly, a complete suspension of payments from Tricare itself, which represents 20-25% of the company’s sales exposure.
The payment issues with Tricare, Zynex’s largest payer, remain unresolved, with the company recently announcing that Tricare is extending its payment pause while it reviews prior claims.
In response to these challenges, Zynex has implemented two rounds of workforce reductions in 2025, announcing a 14% staff cut on June 24 following an earlier 15% reduction in the first quarter.
In other recent news, Zynex, Inc. announced that Tricare, its largest insurance customer, will continue its temporary payment suspension as it conducts further review. This development creates uncertainty for Zynex’s revenue stream, as Tricare represents a significant portion of the company’s customer base. The company has not provided a timeline for when a final decision on the suspension might be reached. Additionally, Zynex has appointed Steven Dyson as the new CEO, effective August 18, 2025. Dyson, who has over 25 years of experience in the medical technology sector, is expected to refocus Zynex’s business strategy towards a more optimized payer mix.
In another development, Zynex has secured a UK patent for a multiparameter, noninvasive sepsis monitoring device. This technology aims to provide early alerts about a patient’s sepsis status, potentially contributing to earlier detection and reduced mortality rates. Furthermore, H.C. Wainwright has reiterated its Buy rating on Zynex stock, maintaining a price target of $8.00. The firm believes Dyson’s leadership will help Zynex return to a strong growth trajectory. These recent developments reflect Zynex’s ongoing efforts to strengthen its market position in the medical technology sector.
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