In a report released yesterday, Josh Jennings from TD Cowen maintained a Buy rating on PROCEPT BioRobotics, with a price target of $50.00.
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Josh Jennings’s rating is based on several key factors that highlight the potential of PROCEPT BioRobotics. Despite a recent drop in stock price following the company’s decision to maintain its 2025 sales guidance and provide a 2026 forecast that aligns with high-end market expectations, Jennings views this reaction as excessive. He believes the company is taking a conservative approach and sees value in the stock, which is not priced for perfection. Consequently, he adjusted the price target to $50, applying a 6 multiple to the 2026 sales estimate.
Additionally, the company’s strong third-quarter results bolster Jennings’s positive outlook. PROCEPT BioRobotics reported a 43% increase in revenue compared to the previous year, surpassing market forecasts. This growth was fueled by robust system sales to new hospitals and a significant rise in handpiece revenue. The company’s gross margin also improved, and their net loss was better than expected. These factors contribute to Jennings’s confidence in the company’s future performance, supporting his Buy rating.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of PRCT in relation to earlier this year.