Zynex Price Target Raised by RBC Capital, HC Wainwright Analysts
By Exec Edge Editorial Staff
RBC Capital analyst Shagun Singh maintained Zynex, Inc. (Nasdaq:ZYXI) with an outperform rating and raised its price target from $13 to $15. Meanwhile, HC Wainwright & Co. analyst Yi Chen maintained a buy rating and raised its price target from $20 to $21.
The Englewood, CO. company, founded in 1996, develops medical devices used for pain management and rehabilitation, as well as laser-based pulse oximetry monitoring systems for use in hospitals.
Zynex’s fourth quarter results showed a robust underlying business performance despite a GAAP miss due to a one-time write-off of slow collective receivables. The company’s stock saw an 11.5% decline in post-market trading, a reaction that analysts believe is overdone, the RBC note said.
The Board of Directors has approved a repurchase of up to $20 million of the company’s common stock after it repurchased $38.4 million in 2023. The company also issued its 2024 guidance, expecting revenue of at least $227 million (up 19% y/y adjusted) and an EPS of at least $0.50, an 85% increase compared to 2023.
Management’s aspirational goal is 20-25% y/y growth, setting them up for a potential beat and raise scenario, Singh wrote.
Zynex is also exploring “going private” as part of its strategic evaluation as management believes this could unlock significant value, particularly in the pain management business, which they feel is undervalued due to investments in the patient monitoring business.
ZYXI is a leader in the $900 million electrotherapy market for the management of pain and rehabilitation with its flagship product, NexWave.
Additionally, the company has received FDA clearance for its next-gen M-Wave Neuromuscular Electrical Stimulation device, offering updated features and cost efficiencies. The company is also expanding into the $3.7 billion U.S. patient monitoring TAM with new product launches planned.
“We believe that NexWave would continue to serve as the primary growth driver for revenue in 2024, supplemented by newly approved M-Wave Neuromuscular Electrical Stimulation (NMES) device among other lines of products,” HC Wainwright’s Yi wrote.
Zynex’s strong business fundamentals and strategic initiatives position it well for 2024 and the company’s exploration of going private adds an interesting dimension to its future trajectory, Singh wrote.
Contact:
executives-edge.com
Editor@executives-edge.com
