H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Brainsway today and set a price target of $17.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors, primarily focusing on Brainsway’s strategic investments and growth potential. The company has recently announced additional minority stake investments, including a significant equity financing agreement with Tangient ATX Inc., which manages the expanding Heading Health mental health clinic network in Texas. This move, along with another investment in an east-coast based mental health provider, is expected to broaden the market for Brainsway’s technology and foster further innovation.
Furthermore, Brainsway’s earlier equity financing transaction with Stella MSO, LLC has shown promising results, with a notable increase in equipment utilization rates. The company’s strategy to continue such investments, supported by partnerships with firms like Valor Equity Partners, aims to establish multiple MSO deals, enhancing their market presence. Valuation-wise, Brainsway is assessed using a sales multiple-driven approach, leading to a 12-month price target of $17 per share, reflecting confidence in the company’s financial prospects despite potential risks.
Selvaraju covers the Healthcare sector, focusing on stocks such as Bioxcel Therapeutics, Emergent Biosolutions, and Vanda. According to TipRanks, Selvaraju has an average return of 23.3% and a 51.40% success rate on recommended stocks.
In another report released on October 22, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $18.50 price target.