Craig Bijou, an analyst from Bank of America Securities, reiterated the Buy rating on PROCEPT BioRobotics (PRCT – Research Report). The associated price target is $55.00.
Craig Bijou has given his Buy rating due to a combination of factors, including the company’s revenue outperformance and promising market dynamics. PROCEPT BioRobotics posted a Q4 revenue that not only met but reached the upper end of its preliminary range, signaling strong financial health. The company’s guidance for 2024 revenue is also slightly above market expectations, suggesting continued growth and potential for further upside. This is likely due to conservative estimates of utilization growth, which leaves room for positive surprises. Moreover, Bijou believes that the market’s concerns regarding increased operational expenses and lower gross margins are exaggerated and that the company will likely achieve incremental operating leverage as revenues grow. Consequently, he has confidently raised the price objective from $52 to $55.
The Buy recommendation is further reinforced by PROCEPT BioRobotics’ significant sales momentum, as indicated by the impressive growth in handpiece sales and utilization rates. The company has experienced a substantial year-over-year increase in handpiece sales, and utilization per system per month has exceeded initial guidance. This momentum is expected to continue, as evidenced by the rapid adoption of their technology by urologists, especially for patients failing drug treatments for benign prostatic hyperplasia (BPH). The conservative utilization rate implied by the 2024 revenue guide compared to the current growth trajectory again points to the potential for better-than-expected performance. In light of these factors, Craig Bijou maintains a positive outlook on the stock, affirming the Buy rating.
In another report released today, TD Cowen also reiterated a Buy rating on the stock with a $59.00 price target.
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PROCEPT BioRobotics (PRCT) Company Description:
PROCEPT BioRobotics Corp is a commercial-stage surgical robotics company focused on advancing patient care by developing transformative solutions in urology.
Read More on PRCT:
- PROCEPT BioRobotics Reports Fourth Quarter and Full Year 2023 Results
- PROCEPT BioRobotics to Present at the 44th Annual TD Cowen Health Care Conference in Boston
- Procept BioRobotics price target raised to $58 from $42 at Piper Sandler
- Procept BioRobotics price target raised to $47 from $44 at Wells Fargo
- PROCEPT BioRobotics® Announces Preliminary Fourth Quarter Revenue of $43.3 million to $43.6 million
