Thursday, November 07, 2019 7:19:41 AM
Profound Medical gets news $45.00 target at Paradigm
NOVEMBER 6, 2019 BY JAYSON MACLEAN
?Paradigm Capital analyst Corey Hammill likes the long-term forecast for medical device company Profound Medical (Profound Medical Stock Quote, Chart, News TSX:PRN) and has a new target price for it.
In an update to clients on Wednesday, Hammill upped his target price for the stock, saying the company’s recurring revenue coupled with a large and still growing market in the US for its products make for a winning combination.
Mississauga-based Profound Medical is currently commercializing its novel non-invasive, image-guided therapeutic technologies which include the TULSA-PRO for the ablation of prostate tissue (with fewer side effects than the current standard of care) and the Sonalleve therapeutic platform for the treatment of uterine fibroids and palliative pain treatment of bone metastases.
Earlier in August of this year, Profound announced that it had received 510(k) clearance from the US FDA to market the TULSA-PRO. Now, the company has outlined more about the US rollout, its commercialization and pricing strategies. According to Hammill, along with the traditional capital equipment purchase and disposables model, Profound will be offering a pay-per-use option where units are provided to facilities at no upfront cost but pay a recurring fee for each procedure, in addition to costs of disposables.
Hammill says the pay-per-use approach will increase long-term revenue and valuation for PRN, saying that although pay-per-use generates lower revenue in the short term owing to the lack of upfront payment, the longer-term revenue is better. And thus, the analyst is revising his forecasts accordingly.
“PRN’s long-term value is clear, driven by the TULSA-PRO`s ability to provide effective treatment with fewer adverse-events in the treatment of prostate cancer and BPH,” writes Hammill.
“Their different payment models offer a chance for rapid uptake of this technology, and the pay-per-use model establishes a second significant source of recurring revenue alongside the revenue generated from disposable sales. While the company will operate at a loss next year while building its sales force and running clinical trials to support insurance reimbursement, the long-term and recurring revenue create a compelling investment opportunity,” he says.
Hammill is expecting fiscal 2019 revenue, EBITDA and EPS of $3.7 million, negative $17.3 million and negative $1.90 per share, respectively, and fiscal 2020 revenue, EBITDA and EPS of $8.2 million, negative $21.0 million and negative $2.20 per share, respectively.
The analyst is reasserting his “Buy” rating while increasing his target price from $40.00 to $45.00, which represented a projected 12-month return of 254 per cent at the time of publication.
Profound, which underwent a ten-for-one share consolidation on October 16, has since seen a jump in share price, rising 33 per cent over the past few weeks. The stock began trading on the Nasdaq exchange on October 29 under the ticker PROF.
“The United States is a key target market for the TULSA-PRO system, which recently received 510(k) clearance from the US Food and Drug Administration, and many of our shareholders are US-based,” said Profound’s CEO, Dr. Arun Menawat, in an October 28 press release. “As we launch TULSA-PRO in the US, we view this Nasdaq listing as a natural extension of our growth plan.”
Recent PROF News
- Profound Medical to Release First Quarter 2024 Financial Results on May 9 – Conference Call to Follow • GlobeNewswire Inc. • 04/22/2024 08:15:00 PM
- Profound Medical to Participate in the 2024 Bloom Burton & Co. Healthcare Investor Conference • GlobeNewswire Inc. • 04/09/2024 11:45:00 AM
- Profound Medical Announces Fourth Quarter and Full Year 2023 Financial Results • GlobeNewswire Inc. • 03/07/2024 09:05:00 PM
- Profound Medical to Participate in Barclays 26th Annual Global Healthcare Conference • GlobeNewswire Inc. • 03/04/2024 09:30:00 PM
- Profound Medical in Collaboration with Siemens Healthineers to Further Expand Physician and Patient Access to the TULSA Procedure • GlobeNewswire Inc. • 02/27/2024 12:45:00 PM
- Profound Medical to Release Fourth Quarter and Full Year 2023 Financial Results on March 7 – Conference Call to Follow • GlobeNewswire Inc. • 02/15/2024 09:30:00 PM
- Profound Medical Announces Non-Brokered Private Placement • GlobeNewswire Inc. • 01/16/2024 09:30:00 PM
- Profound Medical Announces Preliminary Unaudited Fourth Quarter and Full Year 2023 Revenues • GlobeNewswire Inc. • 01/03/2024 09:15:00 PM
- Profound Medical Announces Pricing of US$20 Million Public Offering of Common Shares • GlobeNewswire Inc. • 12/28/2023 03:40:00 AM
- Profound Medical Announces Proposed Public Offering of Common Shares • GlobeNewswire Inc. • 12/27/2023 09:15:00 PM
- Profound Medical to Participate in the Stifel 2023 Healthcare Conference • GlobeNewswire Inc. • 11/08/2023 12:45:00 PM
- Profound Medical Announces CMS Extension of Temporary ‘Code’ for TULSA to ASC Setting • GlobeNewswire Inc. • 11/03/2023 12:00:00 PM
- Profound Medical Announces Third Quarter 2023 Financial Results • GlobeNewswire Inc. • 11/02/2023 08:05:00 PM
- Profound Medical to Release Third Quarter 2023 Financial Results on November 2 – Conference Call to Follow • GlobeNewswire Inc. • 10/19/2023 08:30:00 PM
- Profound Medical 2023 Virtual Analyst & Investor Day Agenda • GlobeNewswire Inc. • 10/10/2023 08:30:00 PM
- Profound Medical Receives U.S. FDA 510(k) Clearance for TULSA-PRO® Thermal Boost • GlobeNewswire Inc. • 09/25/2023 08:05:00 PM
- Save the Date: Profound Medical to Host Virtual Analyst & Investor Day on October 13 • GlobeNewswire Inc. • 09/21/2023 12:00:00 PM
- Profound Medical to Participate in the 2023 Cantor Global Healthcare Conference • GlobeNewswire Inc. • 09/19/2023 08:45:00 PM
- Profound Medical Announces At-the-Market Offering of up to US$30,000,000 • GlobeNewswire Inc. • 09/06/2023 11:23:52 PM
- Profound Medical Announces Second Quarter 2023 Financial Results • GlobeNewswire Inc. • 08/09/2023 08:05:00 PM
- Profound Medical to Release Second Quarter 2023 Financial Results on August 9 – Conference Call to Follow • GlobeNewswire Inc. • 08/02/2023 08:30:00 PM
- Profound Medical Announces New CPT® Category 1 Codes from the AMA for TULSA to Treat Prostate Diseases • GlobeNewswire Inc. • 06/02/2023 05:40:00 PM
- Profound Medical Announces Upcoming Investor Events • GlobeNewswire Inc. • 05/30/2023 12:00:00 PM
- Profound Medical to Participate in A.G.P.’s Virtual Healthcare Conference • GlobeNewswire Inc. • 05/18/2023 12:00:00 PM
- Profound Medical Annual and Special Meeting of Shareholders Voting Results • GlobeNewswire Inc. • 05/17/2023 08:15:00 PM
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