Lifeward shares target raised by H.C. Wainwright

On Friday, H.C. Wainwright maintained a Buy rating on Lifeward (NASDAQ: LFWD) and increased the price target to $13.00 from $9.00. The adjustment followed Lifeward's second-quarter financial report on Thursday, where the company matched revenue expectations and reported a smaller-than-anticipated net loss per share.

Lifeward disclosed 2Q24 revenues of $6.7 million, aligning with the consensus estimates. The net loss stood at $0.50 per share, which was less severe than the expected $0.55 per share loss. This performance has led to a revision in H.C. Wainwright's financial model for Lifeward.

The management of Lifeward has confirmed its revenue guidance for 2024, anticipating a range between $28 million and $32 million. H.C. Wainwright forecasts Lifeward's total revenues for the year to be around $30.8 million, with a projected net loss of $1.62 per share.

At the conclusion of the second quarter in 2024, Lifeward reported having approximately $15.1 million in cash and cash equivalents. According to H.C. Wainwright, these funds should sustain the company's operations until the first quarter of 2026.

The firm has reiterated its Buy rating on Lifeward and raised the price target, taking into account the recent 1-for-7 reverse stock split.

In other recent news, Lifeward's long-standing Chairman of the Board, Jeff Dykan was set to retire and will not seek re-election at the upcoming 2024 Annual Meeting of Shareholders. Joseph Turk, a current board member, will succeed Dykan as chairman following the meeting.

During Dykan's tenure, Lifeward achieved several significant milestones, including obtaining FDA De Novo approval, conducting an Initial Public Offering (IPO), acquiring AlterG to expand its product portfolio, and securing Medicare reimbursement for personal exoskeletons.

In addition to the executive shuffle, Lifeward has welcomed Mike Swinford, the CEO of Numotion, to its Board of Directors. Swinford's extensive experience in the healthcare industry, particularly in mobility and independence solutions, is expected to be a valuable asset to the company.

InvestingPro Insights

Following the recent financial update from Lifeward, the market has reacted to the company's performance and prospects. InvestingPro data highlights a significant revenue growth of 313.3% over the last twelve months as of Q2 2024, an impressive feat that aligns with the company's positive revenue guidance for the year. This growth is further evidenced by a quarterly revenue increase of 401.65% in Q2 2024, underscoring the company's expanding financial footprint.

Despite not being profitable over the last twelve months, with a reported operating income margin of -127.79%, Lifeward's cash position is robust. InvestingPro Tips indicate that Lifeward holds more cash than debt, and its liquid assets exceed short-term obligations, providing financial stability and flexibility. Analysts also anticipate sales growth in the current year, which is consistent with the company's revenue guidance and H.C. Wainwright's revenue forecast. These factors contribute to the positive outlook reflected in the raised price target.

Investors may also take note of the company's recent stock performance, with an 18.31% return over the last week, reflecting a market response to the company's latest financial report and updated guidance. For those seeking a deeper analysis, InvestingPro offers additional tips on Lifeward, available at https://www.investing.com/pro/LFWD.

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