Myomo’s Robust Revenue Growth and Strategic Expansion Justify Buy Rating

Sean Lee CFA, an analyst from H.C. Wainwright, maintained the Buy rating on Myomo (MYO – Research Report). The associated price target is $9.50.

Sean Lee CFA has given his Buy rating due to a combination of factors including Myomo’s impressive revenue growth and strategic plans for future expansion. The company reported a significant 162% year-over-year increase in revenue for the first quarter of 2025, surpassing market expectations. This growth was largely driven by an increase in Medicare Part B patients, which contributed to a higher average selling price and a doubling of total revenue units. Despite challenges with reduced authorizations from Medicare Advantage and private payers, Myomo’s financial position remains strong with $20 million in cash reserves, which is expected to sustain operations until at least 2027.
Looking ahead, Sean Lee CFA notes that Myomo’s management is optimistic about achieving substantial growth in the second half of 2025. The company has maintained its revenue guidance for the year, projecting a 46-60% increase in the latter half compared to the same period in 2024. To support this anticipated growth, Myomo plans to enhance its commercial operations, expand manufacturing capabilities, and significantly increase its advertising budget. These strategic initiatives are expected to bolster the company’s market position and drive future revenue, justifying the Buy rating.

Based on the recent corporate insider activity of 38 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MYO in relation to earlier this year.