H.C. Wainwright lifts Myomo price target, maintains Buy rating

H.C. Wainwright has adjusted its price target for Myomo Inc . (NYSE: NYSE:), a medical robotics company, to $7.50, up from the previous $6.50, while reiterating a Buy rating on the stock. This revision follows Myomo’s recent announcement of its financial results for the second quarter of 2024.

Myomo reported total revenues of $7.5 million for the quarter, surpassing the consensus estimate of $6.6 million. Moreover, the company’s net loss stood at $0.03 per share, which was notably better than the consensus estimate that forecasted a net loss of $0.07 per share. The improved financial performance has been attributed to several positive developments within the company.

According to Myomo’s management, the record revenues achieved in the quarter can be credited to a variety of factors. These include a higher average selling price (ASP) influenced by the Centers for Medicare and Medicaid Services (CMS) pricing guidelines, expedited payments from CMS for Medicare Part B patients, and additional payments from Medicare Advantage payers who are guided by CMS fees.

To be sure, Myomo reported record results for Q2 2024. The company experienced a significant upswing in its financial performance, driven by Medicare fees for its MyoPro-powered arm braces, resulting in record highs in revenue, patient pipeline growth, authorizations, and MyoPro orders and shipments.

Myomo’s revenue for the first half of 2024 increased by 20% over the previous year, and the company anticipates full-year revenue to reach between $28 million and $30 million.

The company is preparing to expand its production capabilities with a move to a larger facility. This expansion is part of a broader strategy that includes increasing distribution through O&P clinics internationally, with a particular focus on Germany, where it generated over $1 million in revenue this quarter.

Moreover, Myomo is aiming to train 80 to 100 O&P clinicians by the end of the year to establish a MyoPro center of excellence. Despite a rise in operating expenses due to increased headcount and engineering projects, the company’s operating loss and net loss remain unchanged from the previous year.

InvestingPro Insights

Following the recent financial updates from Myomo Inc. (NYSE:MYO), the market is responding to a mix of its performance indicators and future prospects. InvestingPro data highlights a market capitalization of $121.51 million, suggesting a modest size within the medical robotics industry. Despite a lack of profitability in the last twelve months, with a P/E ratio of -14.73, the company has experienced a significant return of 568.66% over the past year. This impressive return could be indicative of strong investor confidence in the company’s growth trajectory.

Myomo’s revenue growth also remains robust, with a 21.22% increase over the last twelve months as of Q2 2024, and an even higher quarterly growth rate of 26.22%. The company’s gross profit margin stands at a healthy 67.35%, reflecting its ability to maintain profitability at the operational level. However, it’s important to note that the company is trading at a high Price / Book multiple of 12.56, which may raise questions about valuation among some investors.

According to InvestingPro Tips, analysts are cautious about Myomo’s profitability in the short term, but the company’s liquid assets do exceed its short-term obligations, providing some financial flexibility. Additionally, Myomo operates with a moderate level of debt, which can be a stabilizing factor. For readers interested in a deeper analysis, there are additional InvestingPro Tips available at: https://www.investing.com/pro/MYO

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