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Microbot Medical stock target cut, retains Buy rating

EditorAhmed Abdulazez Abdulkadir
Published 04/18/2024, 01:24 AM
MBOT
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On Tuesday, H.C. Wainwright adjusted its outlook on Microbot Medical (NASDAQ:MBOT), reducing the price target to $7.00 from the previous $8.00, while maintaining a Buy rating on the company's stock. The firm's analyst cited the company's announcement that its operations in Israel and the U.S. would continue seamlessly despite recent events in Israel.

Microbot Medical has confirmed that it is on schedule with its planned timelines and milestones, including its collaboration with the FDA on an Investigational Device Exemption (IDE) submission and the forthcoming human clinical trial of the LIBERTY Endovascular Robotic Surgical System.

The company has completed an internal audit in anticipation of ISO 13485 certification audits expected to take place later in the year, which is a step towards obtaining CE approval. Microbot Medical has also prepared an adequate inventory of the LIBERTY system to support the pivotal study. Furthermore, the company has initiated a partnership to explore future enhancements of the LIBERTY system, such as remote operations, imaging integration, and artificial intelligence capabilities.

Microbot Medical is actively engaged in discussions with potential strategic partners to establish commercialization channels for its products in the U.S. and worldwide markets. The valuation of Microbot Medical by H.C. Wainwright stands at an estimated market value of $140 million.

With approximately 19.4 million shares expected to be outstanding at the end of the first quarter of 2025, this translates to a value of around $7 per share. The firm reiterates its confidence in the company's stock by preserving the Buy rating, albeit with a revised 12-month price target.

InvestingPro Insights

As Microbot Medical (NASDAQ:MBOT) continues to progress in its development and regulatory milestones, the financial health and stock performance metrics from InvestingPro offer additional context for investors. With a market capitalization of approximately $13.66 million, the company holds a price-to-book ratio of 3.74 as of the last twelve months ending Q4 2023, indicating how the market values the company relative to its book value. Despite these valuations, analysts are cautious, reflected in the negative P/E ratio of -1.72 and a PEG ratio of -0.03, suggesting that the market may have concerns about the company's future earnings growth.

An InvestingPro Tip notes that Microbot Medical is trading near its 52-week low, with the price at the previous close standing at $1.03. This could be a critical point for investors, as the company's stock price movements are quite volatile. Additionally, the company does not pay a dividend, which might influence investment decisions for those seeking regular income. It's worth noting that Microbot Medical holds more cash than debt, which is a positive sign for financial stability, and its liquid assets surpass short-term obligations, indicating a solid position to cover immediate liabilities.

Investors interested in a deeper analysis of Microbot Medical can find more InvestingPro Tips on the company's financial health and stock performance. For a limited time, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 9 InvestingPro Tips for Microbot Medical.

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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