On Tuesday, Evercore ISI adjusted its outlook for Augmedix Inc. (NASDAQ: AUGX), lowering the shares price target to $4.50 from the previous $6.50, while keeping an In Line rating.
The firm highlighted several key updates from the company, including a strong year-end performance and promising developments in its partnership with HCA (NYSE:HCA). Expectations are set for significant announcements in the near future, which could occur in less than a month.
The company's Augmedix Go platform is reportedly gaining momentum, with a new pilot program launched with a Fortune 100 company's oncology network. Additionally, management has decided to phase out the Notes product, which will be replaced by GoAssist, a similar service that will be part of the Go platform. This transition is part of Augmedix's ongoing efforts to streamline and enhance its offerings.
The firm's analysts noted that Augmedix is nearing the completion of its funding-related hiring, with approximately two-thirds finished as of today. The company is also planning to increase its investments to expand operations in Bangladesh and to optimize its presence in India. Due to these factors, Evercore ISI anticipates a slight increase in spending for the fiscal year 2024.
Despite the adjustments in spending and the revised price target, Evercore ISI's growth outlook for Augmedix remains largely unchanged. The new price target of $4.50 is based on approximately 1.9 times the company's projected revenues for the fiscal year 2026. The firm's analysts continue to monitor the company's performance and potential in the market as it implements its strategic initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.