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Piper Sandler positive on healthcare stocks ahead of conference

EditorNatashya Angelica
Published 12/19/2024, 10:38 PM
ISRG
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BSX
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ATEC
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ATRC
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DXCM
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MASI
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MMSI
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PODD
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STAA
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GKOS
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NVCR
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KIDS
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INSP
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SIBN
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PRCT
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On Thursday, Piper Sandler analysts provided key insights and expectations for healthcare companies in anticipation of a major investor conference in San Francisco. The analysts expressed optimism for several companies, including ATEC, ATRC, and KIDS, anticipating positive fiscal year outlooks. They also see potential upside for consensus numbers for FNA and SIBN, which typically issue full-year guidance with Q4 earnings.

The analysts are focused on the improvement of profitability among these companies, which they believe will attract investor interest. For DXCM, the expectation is that the company will maintain its 15% revenue growth outlook for 2025, a target the analysts find achievable. Attention is also expected for BSX, GKOS, and PRCT, given their premium valuations and strong growth profiles.

According to InvestingPro data, PRCT has demonstrated remarkable momentum with a 96% return year-to-date and impressive revenue growth of 72% in the last twelve months. While currently trading at premium multiples, the company maintains a "GOOD" overall financial health score.[Unlock deeper insights with InvestingPro, offering comprehensive analysis of 1,400+ US stocks, including detailed Pro Research Reports that transform complex data into actionable intelligence.]

Concern was noted for STAA, where initial guidance might not meet expectations due to softness in key markets. However, any negative impact may be mitigated by the current pullback in share price.

The analysts also discussed companies that do not typically provide Q4 or full-year guidance at the conference, showing a positive inclination towards PEN, due to product launches and international business, and PODD, for its potential in margin expansion and international performance.

MASI was highlighted as a top idea, with management confident in beating Q4 projections and surpassing 2025 consensus estimates. MMSI is also expected to continue its five-year trend of quarterly beats, potentially boosted by the approval of WRAPSODY. NVCR's revenue growth in glioblastoma multiforme (GBM) is anticipated to have sustained momentum into Q4, with interest in the adoption of TTFields for lung cancer.

SHC is not expected to deviate significantly from its previous guidance provided on November 20. Additionally, INSP is projected to outperform Q4 expectations and set comfortable 2025 guidance, with NARI expected to report a Q4 beat and guide to 16-19% revenue growth for 2025.

ISRG is also anticipated to report strong quarterly results, though initial procedure volume guidance for 2025 may be conservative, which could present a buying opportunity for what the analysts deem a premier large-cap medtech asset.

For PRCT specifically, InvestingPro analysis reveals a strong current ratio of 6.02 and moderate debt levels, with two analysts recently revising earnings estimates upward for the upcoming period.

In other recent news, Procept BioRobotics has been making significant strides with their financial performance and growth strategy. The company initiated a public offering of common stock valued at $175 million, with BofA Securities, and Morgan Stanley (NYSE:MS) serving as the joint book-running managers.

Moreover, Procept BioRobotics has reported robust revenue growth of 66% in the third quarter, totaling approximately $58.4 million, largely attributed to the company's Hydros units.

Morgan Stanley initiated coverage on Procept BioRobotics with an Overweight rating, indicating a pathway for further upside despite the high current valuation of the stock. Meanwhile, Jefferies maintains a Hold rating on Procept BioRobotics' stock despite acknowledging the potential of the company's newly approved Hydros system to encourage surgeon adoption and initiate a replacement cycle for older systems.

Truist Securities maintained a Buy rating on Procept BioRobotics, raising its price target to $105 following the company's strong third-quarter performance. On the contrary, despite the company's third-quarter financial results surpassing both BTIG's and consensus estimates, BTIG maintains a Neutral rating on Procept BioRobotics.

These recent developments highlight the continued growth and potential of Procept BioRobotics in its market sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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