Procept BioRobotics Corp (NASDAQ:PRCT) retained a Buy rating and a $75.00 price target from TD Cowen following the announcement of FDA clearance for its Hydros robotic system. The company is set to fully release Hydros to the market within the current quarter and will make the system readily available to hospitals throughout the United States.
The Hydros robotic system is the next-generation platform from Procept BioRobotics, equipped with AI-driven treatment planning, known as FirstAssist AI, as well as advanced image guidance and robotic resection capabilities.
Procept BioRobotics anticipates that the introduction of Hydros will not only improve efficiency and the overall experience for surgeons and staff but also lead to superior clinical outcomes.
The Hydros system's streamlined workflow and advanced features are designed to meet the increasing demand for efficient and improved clinical procedures in the healthcare sector. Procept BioRobotics is preparing for a swift transition to full market availability of Hydros, emphasizing its immediate accessibility to hospitals across the country.
Procept BioRobotics Corp has been making significant strides in both product advancements and robust financial growth. The company has received a reaffirmed Buy rating and a $74.00 price target from Truist Securities, following the announcement of its next-generation HYDROS robotic platform. The platform, designed to deliver aquablation therapy for benign prostate hyperplasia (BPH), has been granted FDA 510(k) clearance, marking a significant development in the field.
The HYDROS system is expected to lead to quicker adoption in the existing market for BPH and cancer treatments, expanding the company's reach within an already underpenetrated market. Procept has reported a substantial 61% increase in total earnings for its second quarter of 2024, reaching $53.4 million, despite a reported net loss of $25.6 million.
These financial developments are attributed to strong U.S. system sales, an expanded U.S. install base, and record international revenues.
The company's strategic initiatives, including expanding its capital sales team, increasing surgeon activity, and exploring international opportunities, are expected to support its ambitious growth trajectory.
InvestingPro Insights
Following the positive outlook from TD Cowen on Procept BioRobotics Corp (NASDAQ:PRCT), the InvestingPro platform provides additional insights that can help investors gauge the company's financial health and market position. With a robust revenue growth of 73.74% over the last twelve months as of Q2 2024, Procept BioRobotics demonstrates a strong capacity for increasing its sales. This is particularly relevant as the company gears up for the full release of its Hydros robotic system, which could potentially accelerate revenue further.
Despite the company not being profitable over the last twelve months and analysts not expecting profitability this year, Procept has managed to achieve a high return over the last year, with a 111.26% price total return. This indicates a significant investor confidence which may be buoyed by the recent FDA clearance and the anticipated market release of Hydros. Additionally, the company's liquid assets exceed its short-term obligations, suggesting financial stability in covering immediate liabilities.
InvestingPro Tips highlight that Procept is trading near its 52-week high, with a price that is 99.5% of this peak, reflecting a large price uptick over the last six months. For investors looking for more detailed analysis and additional tips, there are 10 more InvestingPro Tips available for Procept BioRobotics on their platform, which could provide deeper insights into the company's valuation and market trends.
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