Tuesday, an analyst from TD Cowen adjusted the price target for shares of Vicarious Surgical Inc. (NYSE:RBOT), a robotics-driven surgical company, significantly increasing it to $10.00 from the previous $1.50. The firm maintained a Buy rating on the stock.
The analyst noted that Vicarious Surgical has been making positive strides in the development of its robotic system throughout the second quarter. The company is now on track to deliver key milestones in the coming quarters. One of the major developments anticipated is the system integration, which is scheduled for later this year.
The successful integration of the system is expected to pave the way for initial clinical patient testing, targeted for 2025. This step is crucial as it represents the transition of the company’s technology from development to practical, real-world application in surgical procedures.
Furthermore, the financial health of Vicarious Surgical was addressed, with the analyst pointing out that the company is effectively managing its cash reserves. The management of Vicarious Surgical has reiterated their guidance on cash burn, projecting it to be around $50 million for the year 2024.
Vicarious reported its Q2 financial results, revealing adjusted earnings per share (EPS) of -$2.86, slightly missing the consensus estimate of -$2.72. The company's operating expenses increased by 17% year-over-year to $17.7 million, mainly due to investments in research and development (R&D) and general and administrative (SG&A) expenses. Despite the rise in expenses, Vicarious Surgical confirmed that it is on schedule with the development of its V1.0 system, expected to be completed by Fall 2024.
The company also anticipates beginning surgical operations on humans around the same time next year, aligning with previous projections. Piper Sandler, after reviewing the company's second-quarter results, lowered the price target for Vicarious Surgical to $12 from $30 while maintaining a neutral stance.
The company is advancing its V1.0 surgical system integration and clinical trial plans, including partnerships with hospital systems like LSU Health New Orleans. Vicarious Surgical reiterated its guidance for the full year, expecting a cash burn of approximately $50 million.
InvestingPro Insights
Amidst the optimistic outlook from TD Cowen, real-time data from InvestingPro provides a deeper financial perspective on Vicarious Surgical Inc. (NYSE:RBOT). The company currently holds a market capitalization of $30.25 million, reflecting its size and investor valuation in the market. Despite the challenges, RBOT's balance sheet shows resilience, holding more cash than debt, which is a positive sign for investors concerned about the company's financial stability.
However, it's important to note that Vicarious Surgical is not expected to be profitable this year, as indicated by a negative P/E ratio of -0.51 and analysts' projections. The company’s stock price has also experienced significant volatility, trading near its 52-week low and suffering a substantial price decline of over 80% in the last year. These InvestingPro Tips underscore the high-risk nature of investing in the company at this stage.
For investors seeking to make an informed decision, InvestingPro offers additional insights, with over 12 tips currently available on their platform, including analysis on cash burn and stock performance over various time frames. These tips can provide valuable guidance when considering an investment in Vicarious Surgical.
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