Stereotaxis (NYSE: NYSE:STXS) has retained its Buy rating and a steady price target of $5.00, as confirmed by research firm, TD Cowen. The company, which faced a setback in system sales due to hospital construction delays in the second quarter, is currently shipping multiple systems to customers.
Stereotaxis anticipates second-half revenue to surpass $14 million, aiming to match its full-year revenue with the previous year's figures.
The company's recent achievements include securing CE Mark approval in Europe for its GenesisX system. Additionally, Stereotaxis has filed a 510(k) submission for GenesisX, which is a significant step toward commercialization in the United States. Progress has also been made in the regulatory review processes in both Europe and the U.S. for the company's MAGiC catheter.
This regulatory momentum is seen as a positive development for Stereotaxis, potentially bolstering its market position in the near future. The CE Mark approval, in particular, opens doors for the GenesisX system in the European market, which could contribute to the company's growth trajectory.
As Stereotaxis navigates through the regulatory landscape, its ability to deliver systems to customers despite earlier delays indicates resilience in operations.
Stereotaxis reported its second-quarter revenue of 2024 at $4.5 million, falling short of the consensus forecast and Roth/MKM's estimate of $5.6 million. The company's system revenue was notably low at $0.2 million, compared to the anticipated $1.3 million. Stereotaxis management attributed this to extended customer construction projects but expressed confidence in an improved financial performance in the latter half of the year, forecasting stronger revenue and free cash flow.
The company also reported an operating loss of $6 million and a net loss of $5.8 million for Q2 2024. Despite these losses, Stereotaxis expects over $14 million in revenue in the second half of the year, banking on its new products, the MAGiC catheter, and the GenesisX system. Additionally, the company recently completed the acquisition of Access Point Technologies (APT), which is already yielding sales synergies.
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