After a mixed financial performance in Q2 2022, Minerva Surgical (NASDAQ:UTRS), a company focused on uterine healthcare needs of women, chose to lower its full-year guidance, a move that has prompted JPMorgan to downgrade the stock to Underweight.
While results were not far short of expectations, “we are disappointed to see guidance move meaningfully lower,” the analysts led by Robbie Marcus wrote.
Minerva (UTRS) offers endometrial ablation devices, Minerva ES Endometrial Ablation System, and Genesys HTA Endometrial Ablation System.
The team views the decision to trim guidance as indicating a broader structural slowdown in the endometrial ablation market. That trend, a seasonal slowdown in the current quarter, and a falling cash balance led the firm to downgrade the stock.
The analysts remove the price target citing the need to see better execution and YoY growth in the second half, particularly in 2023.