On Thursday, H.C. Wainwright maintained a positive stance on shares of Zynex Inc. (NASDAQ:ZYXI), reiterating a Buy rating and a $17.00 price target for the company's stock, representing significant upside from the current price of $7.94. With analyst targets ranging from $11.00 to $24.50, InvestingPro data shows strong analyst consensus supporting the company's potential.
The endorsement follows Zynex's announcement of completing clinical verification trials for its NiCO pulse oximeter at Duke University. The firm is in the final testing phase to ensure the device's operational safety before submitting a 510(k) application, which is anticipated to occur later this month or in early 2025.
Zynex's NiCO CO-Oximeter is a multi-parameter pulse oximeter that utilizes laser-based photoplethysmography monitoring technology. It is designed to identify, measure, and monitor four different types of hemoglobin, including oxygenated hemoglobin (O2Hb), reduced hemoglobin (RHb), carboxyhemoglobin (COHb), and methemoglobin (metHb).
The device's ability to measure O2Hb accurately, irrespective of skin pigmentation or COHb levels, positions it favorably against current LED-based pulse oximeters, which have shown inconsistencies in oxygen level measurements, especially in individuals with darker skin pigmentation.
The analyst from H.C. Wainwright highlighted the potential for the NiCO pulse oximeter to gain FDA clearance by mid-2025, which could enable Zynex to penetrate the multi-billion dollar pulse oximetry market with a product that offers enhanced precision and accuracy.
The company's strong financial position, evidenced by a healthy current ratio of 3.94 and an impressive gross profit margin of nearly 80% according to InvestingPro data, positions it well for this expansion. If cleared, NiCO would be Zynex's first monitoring product to enter the market.
The positive outlook for Zynex is supported by the potential impact of the NiCO pulse oximeter on the company's growth and presence in the medical device market. With a market capitalization of $253 million and according to InvestingPro analysis, the stock currently appears undervalued relative to its Fair Value.
The analyst's reiterated Buy rating and price target reflect confidence in Zynex's progress and future prospects, particularly with the upcoming submission and potential FDA clearance of the NiCO device. For deeper insights into Zynex's valuation and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Zynex, Inc. reported a slight increase in net revenue to $50 million and a net income of $2.4 million in its Q3 earnings call. The company also noted a 13% year-over-year order growth and projected a total revenue of $200 million for 2024. Despite a decrease in device revenue, Zynex experienced an increase in supplies revenue and is actively diversifying its product offerings.
In line with its expansion plans, Zynex aims to add 10 sales representatives monthly over the next 18 months. The company recently completed a clinical trial for its NiCO pulse oximeter, a significant step towards seeking FDA approval. This technology, designed with laser precision, is expected to offer more accurate blood oxygen level measurements than the current LED-based devices.
These are the recent developments from Zynex, as the company continues to make strides in the medical technology market. The firm's progress has been noted by various analysts, emphasizing the company's steady growth and future potential.
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