Thursday saw Nano-X Imaging (NASDAQ:NNOX) shares trading 55% higher after NVIDIA (NASDAQ:NVDA) disclosed a notable investment in the medical imaging technology company. Cantor Fitzgerald has reiterated its Overweight rating on Nano-X Imaging, maintaining a price target of $18.00.
The investment, revealed in NVIDIA's 13-F filing, consists of 59,362 shares, which amounted to approximately $380,000 at the time of the filing. This disclosure comes as a follow-up to Nano-X's acquisition of Zebra Medical in November 2021, a move supported financially by several companies, including NVIDIA, during a Series C funding round totaling $30 million. Following the acquisition, Zebra Medical was rebranded to Nanox.AI, though the specifics of the acquisition terms have not been made public.
Nano-X Imaging aims to revolutionize the medical imaging industry through its novel technology, which includes the Nanox System, an innovative digital X-ray device. The company's growth strategy has been marked by strategic acquisitions and partnerships, as evidenced by the integration of Zebra Medical, now Nanox.AI, which specializes in medical imaging analytics.
InvestingPro Insights
Amid the recent buzz surrounding Nano-X Imaging (NASDAQ:NNOX), investors are closely monitoring the company's financial health and market performance. With a current market capitalization of $568.66 million, Nano-X is navigating the competitive medical technology landscape. An important highlight from the InvestingPro Tips is the company's strong liquidity position, as it holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, which is a positive sign for stakeholders concerned with the company's financial resilience.
Furthermore, while Nano-X has not been profitable over the last twelve months, analysts predict that the company will turn a profit this year. This anticipated shift towards profitability could be a driving factor behind the maintained Overweight rating and $18.00 price target by Cantor Fitzgerald. The stock's recent performance also shows a significant return, with a total price return of 10.8% over the last week, indicating a bullish trend in investor sentiment.
On the valuation front, Nano-X's price-to-earnings (P/E) ratio stands at -3.34, reflecting its current lack of profitability. However, the forward-looking nature of the market is captured in the company's price-to-earnings-growth (PEG) ratio of 0.19 for the last twelve months as of Q3 2023, suggesting that investors may be expecting growth in earnings relative to the share price. It's worth noting that the company's gross profit margin is notably weak at -68.7%, which may be a concern for investors looking at operational efficiency.
For those interested in a deeper dive into Nano-X Imaging's financial metrics and strategic outlook, there are additional InvestingPro Tips available. Readers can explore these insights and more by using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With a total of 10 tips listed on InvestingPro, investors can gain a comprehensive understanding of the company's potential and make informed investment decisions.
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