Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Brainsway shares target raised by H.C. Wainwright on strong Q1 results

EditorEmilio Ghigini
Published 09/05/2024, 09:34 pm
© Shutterstock
BWAY
-

On Thursday, H.C. Wainwright adjusted its outlook on Brainsway (NASDAQ:BWAY) shares, increasing the price target to $15.00 from $13.00 while reiterating a Buy rating on the stock. This revision follows Brainsway's announcement last week of its first-quarter financial results for 2024.

The company reported a top-line revenue of $9.1 million in the first quarter, surpassing the analyst's projection of $8.4 million and marking a 37% increase compared to the same period in the previous year.

Notably, Brainsway achieved a $0.00 earnings per share in the first quarter, which was more favorable than the anticipated net loss of $0.02 per share.

In light of these results, H.C. Wainwright has updated its full-year revenue forecast for Brainsway, raising the 2024 estimate to $38.5 million from the prior $36.3 million. Similarly, the projection for 2025 has been increased to $43 million, up from the earlier prediction of $41.5 million.

The firm now expects Brainsway to report net earnings of $0.03 per share for both 2024 and 2025, in contrast to the previously forecasted net loss of $0.03 per share for 2024.

Brainsway's performance has been attributed to the robust sales growth of its proprietary Deep Transcranial Magnetic Stimulation (Deep TMS) technologies. These technologies are used in helmets designed for treating major depressive disorder (MDD), obsessive-compulsive disorder (OCD), and smoking cessation.

During the first quarter, the company shipped 57 new Deep TMS systems, expanding its installed base to a total of 1,158 systems. Additionally, 31 OCD coils were shipped as add-on helmets, enabling OCD treatment capabilities in half of the installed base.

H.C. Wainwright anticipates that Brainsway will continue to add approximately 60 new systems per quarter, potentially reaching an installed base of around 1,340 systems by the end of 2024.

The firm's confidence in Brainsway's potential for sustainable profitability and sequential sales growth underpins the decision to maintain a Buy rating and raise the 12-month price target, reflecting higher revenue forecasts and a slight increase in the valuation multiple from 4.7x to 5.1x within the comparable coverage universe.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.