EDAP TMS: Strong HIFU Momentum and Strategic Shift Underpin Buy Rating and $14 Target

EDAP TMS, the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Swayampakula Ramakanth from H.C. Wainwright reiterated a Buy rating on the stock and has a $14.00 price target.

Swayampakula Ramakanth has given his Buy rating due to a combination of factors tied primarily to the strong performance and outlook of EDAP TMS’s HIFU business. He highlights that preliminary fourth-quarter 2025 results materially exceeded his expectations for core HIFU revenue, supported by a record number of Focal One system installations and notable growth in U.S. procedure volumes. He also views management’s deliberate shift in focus away from the legacy Distribution and ESWL activities toward the higher-growth HIFU segment as evidence of effective strategic execution.

Swayampakula Ramakanth’s rating is based on management’s 2026 revenue guidance, which calls for total sales meaningfully above consensus, driven by an anticipated mid‑30s percentage growth in core HIFU revenues. He believes that if interest rates remain steady, the pace of HIFU adoption could surpass current projections, enhancing the company’s long‑term growth profile. His $14 price target is supported by a blended valuation framework that incorporates both a forward earnings multiple and a discounted cash flow analysis, while he acknowledges execution, regulatory, macroeconomic, reimbursement, currency, and IP-related risks that could affect achievement of this target.

According to TipRanks, Ramakanth is a 5-star analyst with an average return of 18.3% and a 43.94% success rate. Ramakanth covers the Healthcare sector, focusing on stocks such as Corcept Therapeutics, Delcath Systems, and Janux Therapeutics Inc.

In another report released yesterday, TipRanks – Google also upgraded the stock to a Buy with a $4.50 price target.