On Tuesday, H.C. Wainwright adjusted its outlook on Ekso Bionics (NASDAQ:EKSO), a company specializing in exoskeleton technology. The firm lowered its price target on the company's shares to $9.00 from the previous $10.00 but maintained a Buy rating. This revision follows Ekso Bionics' third-quarter financial report on Monday, which revealed lower-than-expected revenue and a net loss per share.
Ekso Bionics' third-quarter performance showed revenues of $4.1 million, falling short of the consensus estimate of $5.5 million. The net loss for the quarter was $0.10 per share, which was slightly better than the consensus estimate of a $0.11 per share loss. In light of these results, H.C. Wainwright has updated its financial model for the company.
For the full year 2024, the firm has adjusted its revenue projections for Ekso Bionics to $17.9 million, down from the previously expected $21.1 million. The projected net loss has also been updated to $0.48 per share. The adjustment in revenue projections and the consequent change in the price target are attributed to the reported financials for the third quarter and the challenges in the reimbursement processes for EKSO Indego, a product line of the company.
The new 12-month price target of $9 per diluted share reflects the revised expectations and the current financial trajectory of Ekso Bionics. Despite the lowered target, H.C. Wainwright's Buy rating indicates a continued positive outlook on the stock's potential performance.
In other recent news, Ekso Bionics Holdings, Inc. reported record-breaking quarterly sales of $5 million in the second quarter of 2024, despite a slight revenue decrease in the first half of the same year. The company also sold 37 EksoHealth devices and received a favorable payment decision from the Centers for Medicare & Medicaid Services (CMS) for their Ekso Indego Personal device. The CMS reimbursement, based on the established $91,032 rate under HCPCS code K1007, marks a significant milestone for the company and Medicare beneficiaries with spinal cord injuries.
In addition, Ekso Bionics has launched the EksoHealth Personal Program in the U.S. to assist patients in accessing these personal exoskeletons. The company plans to work with Medicare Advantage plans and commercial insurers later in 2024, aiming to tap into a broader market of individuals covered by Medicare. Despite reporting a net loss of $5.8 million for the first half of 2024, Ekso Bionics managed to reduce operating expenses and is focusing on market expansion.
The company anticipates the Indego Personal program to significantly impact revenue from 2025 onwards. Ekso Bionics is expanding access to their exoskeleton devices and targeting a larger market share.
InvestingPro Insights
While H.C. Wainwright has adjusted its outlook on Ekso Bionics, InvestingPro data provides additional context to the company's financial situation. As of the last twelve months ending Q2 2024, Ekso Bionics reported revenue of $18.16 million, showing a growth of 15.63% compared to the previous period. This growth trend aligns with the firm's continued positive outlook despite the lowered price target.
InvestingPro Tips highlight that Ekso Bionics' net income is expected to grow this year, which could potentially offset some of the concerns raised by the recent quarterly results. Additionally, the company operates with a moderate level of debt, which may provide some financial flexibility as it navigates current challenges.
However, it's important to note that Ekso Bionics is currently not profitable over the last twelve months, with an operating income margin of -65.92%. This aligns with H.C. Wainwright's projected net loss for the full year 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 7 additional tips for Ekso Bionics, providing a deeper understanding of the company's financial health and market position.
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