On Monday, Piper Sandler, a financial services firm, increased its price target for Procept BioRobotics Corp (NASDAQ:PRCT) shares to $75.00, up from the previous target of $67.00. The firm also reiterated its Overweight rating on the stock. The adjustment follows a recent investor day at the AUA conference attended by analysts from Piper Sandler.
During the event, Procept BioRobotics showcased strong momentum within its base business. The company's Aquabeam system, a novel technology for prostate surgery, is gaining significant interest, with the analyst noting the beginnings of a competitive race to acquire access to this equipment. The firm's confidence is bolstered by the expectation that Procept BioRobotics will meet or surpass revenue estimates for the current year.
The potential for the Aquabeam system in Ambulatory Surgical Centers (ASCs) was also highlighted as a substantial opportunity. Medical professionals attending the conference confirmed the viability of same-day surgeries using the system. Additionally, the international market, particularly Japan, was identified as an area where Procept BioRobotics' presence is currently undervalued.
Management's detailed presentation on the prospects of utilizing the Aquabeam for prostate cancer treatment was also a point of interest. According to Piper Sandler's analysis, even a 1% patient treatment rate with Aquabeam could translate into over $100 million in revenue, a figure not yet factored into the consensus estimates for the company.
In summary, Piper Sandler's revised price target is based on the belief that Procept BioRobotics is poised to grow as a comprehensive urology provider. The firm anticipates that this growth will continue to drive the company's stock price upward.
InvestingPro Insights
Following Piper Sandler's optimistic outlook on Procept BioRobotics Corp (NASDAQ:PRCT), real-time data from InvestingPro provides additional context for investors. The company's market capitalization stands at $3.31 billion, reflecting a significant player in its sector. Notably, Procept BioRobotics has experienced a remarkable 125.33% return over the last year, which aligns with the positive sentiment expressed by Piper Sandler. Additionally, the company's revenue has grown a robust 83.44% over the last twelve months as of Q1 2024, showcasing the strong momentum within its base business that was highlighted during the AUA conference.
InvestingPro Tips indicate that analysts have revised their earnings upwards for the upcoming period, which could signal confidence in the company's future performance. However, the company is not expected to be profitable this year, and the Relative Strength Index (RSI) suggests the stock is currently in overbought territory. These insights suggest that while the company's growth prospects are strong, investors might also want to consider the potential for near-term volatility. For those interested in a deeper analysis, there are additional InvestingPro Tips available for Procept BioRobotics at https://www.investing.com/pro/PRCT, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.