Procept BioRobotics Corp (NASDAQ: PRCT) has sustained its Buy rating alongside a steadfast price target of $99.00, as confirmed by a market analyst from TD (TSX:TD) Cowen.
The endorsement comes after the company announced significant regulatory milestones in its pursuit of prostate cancer treatment solutions.
The analyst expressed confidence in Procept BioRobotics' trajectory, highlighting the recent FDA approval for a pivotal study and the award of a breakthrough designation for prostate cancer.
These advancements were made public on Monday, marking a promising development in the company's operational progress.
The forthcoming IDE trial is set to evaluate the effectiveness of Aquablation therapy compared to radical prostatectomy. Success in this trial could lead to Procept BioRobotics obtaining a prostate cancer-specific indication. This would be a notable achievement, as no other energy-based treatment currently holds such an indication.
The analyst's optimism is rooted in the potential market opportunities that a prostate cancer-specific indication could unlock for Procept BioRobotics. The breakthrough designation, in particular, is expected to facilitate a faster developmental process and review of Aquablation therapy by the FDA.
In other recent news, Procept BioRobotics has been making significant strides in the medical technology sector. The company has received FDA approval for a pivotal trial in prostate cancer, comparing its Aquablation therapy to traditional radical prostatectomy.
This development, which arrived ahead of Piper Sandler's estimates, is expected to contribute over $50 million in annual procedure revenue starting in 2026.
Additionally, Procept BioRobotics has recorded a significant 61% increase in total earnings for the second quarter of 2024, reaching $53.4 million, despite a reported net loss of $25.6 million. This financial growth is attributed to strong U.S. system sales, an expanded U.S. install base, and record international revenues.
Analyst firms Piper Sandler, TD Cowen, Truist Securities, and BofA Securities have all expressed confidence in the company's growth trajectory. These firms maintain positive ratings on the company's stock, with increased price targets reflecting the potential of the company's Hydros system and its prostate cancer treatments.
Lastly, Procept BioRobotics has received FDA clearance for its Hydros robotic system, integrating AI-driven treatment planning and advanced image guidance. This system is expected to enhance efficiency and clinical outcomes, further contributing to the company's growth.
InvestingPro Insights
Procept BioRobotics Corp's recent regulatory milestones and potential market expansion are reflected in its financial performance and market sentiment. According to InvestingPro data, the company has shown impressive revenue growth of 73.74% over the last twelve months as of Q2 2024, with quarterly revenue growth of 61.17% in Q2 2024. This strong growth aligns with the company's progress in developing innovative prostate cancer treatments.
Despite the positive regulatory news, InvestingPro Tips indicate that the stock has taken a big hit over the last week, with a 1-week price total return of -8.64%. This short-term dip could present an opportunity for investors bullish on the company's long-term prospects, especially considering the stock's significant 1-year price total return of 122.5%.
It's worth noting that while Procept BioRobotics is making strides in its regulatory approvals, the company is not yet profitable. An InvestingPro Tip suggests that analysts do not anticipate the company will be profitable this year. This is consistent with the company's current focus on research and development in the competitive medical technology sector.
For investors seeking more comprehensive analysis, InvestingPro offers additional tips and insights. There are 9 more InvestingPro Tips available for Procept BioRobotics, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.