Tuesday, November 22, 2022 10:55:58 AM
Profound Medical scores rating upgrade from Raymond James
Even with its share price down substantially over the past year and a half, Raymond James analyst Rahul Sarugaser is raising the roof over Profound Medical Corp (Profound Medical Stock Quote, Charts, News, Analysts, Financials NASDAQ:PROF), saying the stock now deserves a ratings boost after the company’s report of strong traction in the US market for its TULSA-PRO medical device.
In an update to clients on Thursday, Sarugaser increased his rating from “Outperform” to “Strong Buy” while maintaining a $15.00 target price, good for a projected return at the time of publication of 283 per cent.
Profound Medical, which is commercializing the TULSA-PRO medical device for the incision-free ablation of prostate tissue, announced its third quarter 2022 results on Thursday, reporting $2.0 million in revenue compared to $2.5 million a year earlier and an EBITDA loss of $6.7 million. (All figures in US dollars.)
“As clinical data continue to demonstrate that TULSA is the best modality when it comes to prostate cancer treatment outcomes and side effects, and more physicians learn of our technology’s flexibility to treat an unrivalled variety of prostate disease patients, our confidence is growing in its potential to change the current standard of care,” said CEO and Chairman Dr. Arun Menawat in a press release.
“Among the keys to reaching that level of long-term success will be continuing to expand our installed base of TULSA-PRO systems and helping to drive increased per-site utilization,” he said.
On the Q3 top and bottom lines, Sarugaser said the $2.0 million in revenue was better than his forecast at $1.8 million but under the consensus at $2.2 million, while the EBITDA loss of $6.7 million compared to Sarugaser’s call at negative $6.8 million and the Street’s $6.5 million.
But it’s the road ahead that’s looking better, according to Sarugaser, who said that during Profound’s Q3 conference call, management revealed “some very promising glimmers of traction and broadening clinical applicability across its installed base,” saying that the number of installed TULSA-PRO devices would go from a current 30 to 34 by the year’s end.
Further, management said multiple installed sites are reporting four to six-month, fully-scheduled wait lists, while one teaching hospital reported that 25 per cent of all prostate cancer removals are being performed using the TULSA (75 per cent surgery). And management said another teaching hospital now uses TULSA for BPH, and yet another for palliative prostate cancer treatments, which is beyond TULSA’s core application in intermediate prostate cancer.
“We are raising our rating on Profound Medical to Strong Buy given our base case scenario analysis implying a 5x return on PROF’s stock over the next 24 months. Even our bear case scenario implies a 3x return over 24 months,” Sarugaser wrote.
Recent PROF News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 07/18/2024 08:45:04 PM
- Profound Medical to Release Second Quarter 2024 Financial Results on August 8 – Conference Call to Follow • GlobeNewswire Inc. • 07/18/2024 08:30:00 PM
- Form EFFECT - Notice of Effectiveness • Edgar (US Regulatory) • 07/16/2024 04:15:13 AM
- Profound Medical Announces Category 1 CPT Codes Proposed CY2025 Rule for TULSA to Treat Prostate Diseases • GlobeNewswire Inc. • 07/11/2024 11:00:00 AM
- Form F-X - Appointment of Agent for Service of Process and Undertaking • Edgar (US Regulatory) • 06/14/2024 09:23:52 PM
- Form F-10 - Registration Statement for Securities of certain Canadian Issuers. • Edgar (US Regulatory) • 06/14/2024 09:01:28 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/14/2024 08:05:05 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/03/2024 08:30:07 PM
- Profound Medical Annual General Meeting of Shareholders Voting Results • GlobeNewswire Inc. • 05/15/2024 09:00:00 PM
- PROFOUND MEDICAL ANNUAL GENERAL MEETING OF SHAREHOLDERS VOTING RESULTS • PR Newswire (Canada) • 05/15/2024 08:12:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/14/2024 01:30:06 PM
- Profound Medical Receives U.S. FDA 510(k) Clearance for ‘Contouring Assistant’ AI Module that Enables Creation of an Automated TULSA Treatment Plan • GlobeNewswire Inc. • 05/14/2024 11:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/09/2024 08:15:06 PM
- Profound Medical Announces First Quarter 2024 Financial Results and Issues Full-Year 2024 Revenue Guidance • GlobeNewswire Inc. • 05/09/2024 08:05:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/06/2024 08:30:09 PM
- Growing Body of Clinical Evidence Points to the Potential of Profound Medical’s TULSA Procedure Becoming a Mainstream Treatment Modality Across the Entire Prostate Disease Spectrum • GlobeNewswire Inc. • 05/06/2024 08:15:00 PM
- 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
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