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H.C. Wainwright has maintained a Buy rating for Zynex Inc. (NASDAQ: NASDAQ:ZYXI) with a steady price target of $16.00.
The firm's endorsement follows Zynex's recent announcement on September 3 that its TensWave prescription device has been cleared by the FDA.
TensWave is a pain relief solution utilizing Transcutaneous Electrical Nerve Stimulation (TENS) therapy. Its portable design is meant for easy integration into patients' daily lives.
TensWave is seen as a complement to Zynex's leading NexWave device, which uses interferential current as its primary modality for securing prescriptions.
TensWave is specifically targeted at patients whose insurance plans only cover TENS therapy, offering Zynex the ability to cater to a wider range of insurance coverage scenarios.
Zynex recently received FDA clearance for its new TensWave device, a significant development in its product line. This device is intended to deliver TENS therapy for pain relief and aligns with insurance reimbursement criteria.
Simultaneously, Zynex reported its Q2 financial results for 2024, revealing a total revenue of $49.9 million, an 11% year-over-year growth, and a net income of $1.2 million. Despite these figures falling short of analysts' expectations, the company saw a 20% increase in orders during the quarter.
InvestingPro Insights
As Zynex Inc. (NASDAQ: ZYXI) continues to expand its product line with the recent FDA clearance of TensWave, a closer look at the company's financial health and market performance offers valuable insights. Zynex's market capitalization stands at $246 million, illustrating a moderate scale within the medical devices sector. With a high Price/Earnings (P/E) ratio of 42.15, the company is trading at a premium compared to the industry average, which could be indicative of investor optimism towards its growth prospects.
InvestingPro Tips highlight that Zynex's management has been proactively buying back shares, signaling confidence in the company's future. Additionally, the company's liquid assets surpass its short-term obligations, pointing to a strong liquidity position. These factors, combined with a high shareholder yield and the prediction that Zynex will be profitable this year, paint a picture of a company with robust fundamentals.
On the performance front, Zynex has experienced a revenue growth of 9.11% over the last twelve months as of Q2 2024, with a notable gross profit margin of 80.0%. However, the company's stock has seen a decline in the short term, with a 6-month price total return of -39.78%, possibly presenting a buying opportunity for long-term investors. For readers interested in further analysis and additional InvestingPro Tips for Zynex, there are 8 more available at InvestingPro.
With a fair value estimation of $10.81 by InvestingPro, compared to H.C. Wainwright's target of $16.00, investors might want to consider the potential for price correction. As Zynex gears up for its next earnings date on October 29, 2024, stakeholders and potential investors will be watching closely to see if the company can meet its optimistic financial expectations and justify its current valuation.
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