Analyst Travis Steed of Bank of America Securities maintained a Buy rating on Kestra Medical Technologies Ltd. (KMTS – Research Report), with a price target of $30.00.
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Travis Steed’s rating is based on a combination of factors that suggest significant potential for Kestra Medical Technologies Ltd. to outperform. Firstly, the company has already provided preliminary revenue and gross profit figures that exceed initial expectations, indicating a strong financial outlook. The anticipated revenue growth and gross margin expansion are driven by increased market share and a favorable mix of in-network patients.
Additionally, Kestra’s innovative approach in the medical technology space, similar to successful market entrants in other sectors, positions it well to capture a substantial market share. The company’s lease model further enhances its gross margin potential, with refurbishment costs significantly lower than initial production costs, leading to high profitability per unit over time. These elements, combined with the current stock price being below the price objective, support the Buy rating as the company is poised for growth and value creation.
In another report released on March 31, Wolfe Research also initiated coverage with a Buy rating on the stock with a $29.00 price target.