In a recent move, Morgan Stanley analyst Patrick Wood has adjusted the price target for Procept BioRobotics (PRCT, Financial), lowering it from $95 to $71. Despite reporting a robust performance in the first quarter and receiving positive feedback during the intra-quarter, the stock has seen a notable decline in its trading value, which Wood believes may be unjustified.
Following discussions with the company's management, Morgan Stanley remains optimistic about the continuation of increased utilization trends into the second quarter. This perspective leads the firm to maintain an Overweight rating on the shares, interpreting the recent pullback as a potential opportunity for investors to buy into the stock.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for PROCEPT BioRobotics Corp (PRCT, Financial) is $92.44 with a high estimate of $105.00 and a low estimate of $70.00. The average target implies an upside of 75.95% from the current price of $52.54. More detailed estimate data can be found on the PROCEPT BioRobotics Corp (PRCT) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, PROCEPT BioRobotics Corp's (PRCT, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for PROCEPT BioRobotics Corp (PRCT, Financial) in one year is $137.33, suggesting a upside of 161.38% from the current price of $52.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the PROCEPT BioRobotics Corp (PRCT) Summary page.
PRCT Key Business Developments
Release Date: February 25, 2025
- Total Revenue (Q4 2024): $68.2 million, growth of 57% compared to Q4 2023.
- Full Year Revenue (2024): $224.5 million, growth of 65%.
- US Revenue (Q4 2024): $60.4 million, growth of 50% compared to Q4 2023.
- International Revenue (Q4 2024): $7.8 million, growth of 137% compared to Q4 2023.
- Gross Margin (Q4 2024): 64%, an all-time high.
- Operating Expenses (Q4 2024): $63.4 million, compared to $50.8 million in Q4 2023.
- Net Loss (Q4 2024): $18.9 million, compared to $27.5 million in Q4 2023.
- Adjusted EBITDA Loss (Q4 2024): $10.3 million, compared to a loss of $23.3 million in Q4 2023.
- Cash Equivalents and Restricted Cash (End of 2024): $337 million.
- Robotic Systems Sold (Q4 2024): 60 systems, with 95% being Hydros.
- Average Selling Price of Systems (Q4 2024): Approximately $460,000.
- Handpieces Shipped (Q4 2024): Approximately 8,750, with an average selling price of $3,200.
- 2025 Revenue Guidance: Approximately $320 million, growth of 43% compared to 2024.
- 2025 Gross Margin Guidance: Approximately 64.5%.
- 2025 Operating Expenses Guidance: Approximately $300 million, growth of 28% over 2024.
- 2025 Adjusted EBITDA Loss Guidance: Approximately $35 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- PROCEPT BioRobotics Corp (PRCT, Financial) reported a 57% increase in total revenue for Q4 2024 compared to Q4 2023, driven by increased robot sales and procedures.
- The company achieved a 60% growth in the US installed base, with 505 systems by the end of 2024.
- The introduction of the Hydro robotic system, featuring advanced AI and ultrasound integration, has been well-received, leading to a robust capital pipeline.
- International revenue grew by 137% in Q4 2024, with strong sales momentum in the United Kingdom.
- Gross margin for Q4 2024 reached an all-time high of 64%, attributed to improved operational efficiencies and higher average selling prices.
Negative Points
- A saline shortage due to Hurricane Helene impacted Q4 2024 procedures, resulting in a delay or cancellation of up to 2000 expected procedures.
- Operating expenses for Q4 2024 exceeded guidance by approximately 3.5%, primarily due to higher variable compensation expenses.
- The company experienced a net loss of $18.9 million for Q4 2024, although this was an improvement from the previous year.
- The transition to the new Hydro system required significant training efforts, which initially impacted sales force productivity.
- Despite strong growth, PROCEPT BioRobotics Corp (PRCT) still holds only about 10% of the US BPH receptive market share, indicating a long runway for further market penetration.
