Airsculpt Technologies, Inc. (AIRS) Faces Short-Term Challenges: A Cautious Hold Rating

Airsculpt Technologies, Inc. (AIRS – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Whit Mayo from Leerink Partners downgraded the rating on the stock to a Hold and gave it a $5.00 price target.

Whit Mayo has given his Hold rating due to a combination of factors including Airsculpt Technologies, Inc.’s (AIRS) underwhelming first-quarter results, which showcased a significant EBITDA shortfall, heightened sensitivity to customer pricing, and increased customer acquisition costs. Mayo notes that while the company’s investment in marketing and organizational growth could eventually lead to better volumes, customer acquisition costs, and margins, the short-term outlook remains challenging. This view is further supported by a downgraded growth forecast, potential risks to the company’s 2024 guidance, and an overall uncertainty regarding the improvement in growth trends.

The second quarter has started off sluggishly for AIRS, trailing behind their projections, with the anticipated seasonal increase in business not aligning with historical patterns. Revenue for the second quarter is projected to be flat or slightly down year-over-year, with same-store cases expected to decline. Furthermore, Mayo points out that the earnings forecast for the company is heavily reliant on stronger performance in the latter half of the year, which is yet to be realized. Considering these factors, along with a reduction in EBITDA estimates and a lowered price target, Mayo’s decision to issue a Hold rating reflects a cautious stance on AIRS’s near-term prospects.

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Airsculpt Technologies, Inc. (AIRS) Company Description:

AirSculpt Technologies Inc is a provider of body contouring procedures delivering a premium consumer experience. It provides a custom body contouring using proprietary AirSculpt method that removes unwanted fat in a minimally invasive procedure, producing dramatic results. Its mission is to generate the best results for patients.