Canaccord Genuity has maintained a Buy rating on CVRx Inc (NASDAQ: CVRX) and increased the price target to $15.00 from the previous $14.00.
The firm's analyst cited the second-quarter revenue for 2024, which aligned with both their own and the consensus estimate of $11.8 million, marking a 24% year-over-year increase. U.S. heart failure (HF) revenue reached $10.5 million, showing a 27% rise from the previous year, although it was slightly under the analyst's expectation of $10.7 million. However, this figure did meet the consensus estimate.
The company reported the sale of 339 HF units during the quarter, falling short of the analyst's 352 unit forecast. Additionally, CVRx saw a decrease in its active account base, losing one account quarter-over-quarter as the company's new sales leadership shifted emphasis from opening new accounts to boosting utilization of their services.
CVRx has reaffirmed its full-year 2024 sales guidance, projecting revenues between $50.0 million and $53.0 million. The company also adjusted its operating expense guidance upward, reflecting the costs associated with new hires as part of its leadership team expansion.
The analyst noted that the second quarter results indicate CVRx's efforts to regain stability after an unexpected first quarter setback. The impact of executive additions and awareness initiatives is expected to take additional time to manifest positively in the company's revenue. The firm also expressed caution regarding potential reimbursement cuts for CVRx next year, which will be determined in November. They suggested that there may be limited upside in the near term due to the early stages of the company's strategic shift and expectations for increased utilization.
CVRx reported a 24% increase in total revenue for the second quarter, reaching $11.8 million. Despite a net loss of $14 million in the same quarter, the company remains optimistic, forecasting total revenue between $50 million and $53 million for the full year of 2024. The company also announced key executive appointments, including a new Chief Revenue Officer and Chief Medical Officer, aimed at strengthening market development and overcoming adoption barriers for its Barostim therapy.
In addition, CVRx is engaging with CMS and hospital stakeholders to negotiate fair reimbursement for Barostim therapy. The company also plans to enhance education, awareness, and clinical evidence for the therapy. For the third quarter of 2024, revenue is estimated to range between $12.7 million and $13.7 million.
InvestingPro Insights
As we digest the analysis provided by Canaccord Genuity on CVRx Inc, it’s worth considering additional data from InvestingPro to gain a more comprehensive view of the company's financial health and market performance. Notably, CVRx holds a market cap of approximately $200.19 million, indicating its size within the industry. The company has experienced robust revenue growth over the last twelve months as of Q1 2024, with an impressive increase of 59.59%. This aligns with the reported 24% year-over-year increase in second-quarter revenue for 2024, reinforcing the company's growth trajectory.
InvestingPro Tips suggest that while CVRx holds more cash than debt on its balance sheet, providing some financial stability, the company is quickly burning through cash. This could be a point of concern for investors, especially as analysts have revised their earnings downwards for the upcoming period and do not anticipate the company will be profitable this year. Moreover, the stock has fared poorly over the last month, with a price total return of -22.69%.
For investors seeking further insights and tips on CVRx, InvestingPro offers additional guidance. There are currently 9 more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/CVRX. Interested readers can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, potentially unlocking valuable information to inform their investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.