Young Li, an analyst from Jefferies, maintained the Buy rating on Accuray (ARAY – Research Report). The associated price target is $4.50.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Young Li has given his Buy rating due to a combination of factors including Accuray’s strategic initiatives and market positioning. The company is actively managing tariff challenges by implementing a duty drawback program and exploring dual sourcing, which could mitigate potential risks. Additionally, Accuray’s significant market share in China, particularly in the high-value Type A market, provides a strong foundation for growth despite the uncertainties in trade policies.
Furthermore, the recent exchange of convertible notes has removed a financial overhang, improving the company’s capital structure. Accuray’s new credit agreements and refinancing efforts enhance its financial flexibility, allowing it to focus on growth in emerging markets and Japan. The performance of the Helix value product in key regions like India and South America also supports a positive outlook for the company’s future growth prospects.
In another report released on June 6, BTIG also reiterated a Buy rating on the stock with a $4.00 price target.