JMP Securities analyst Daniel Stauder reiterated a Buy rating on Neuronetics (STIM – Research Report) today and set a price target of $7.00.
Daniel Stauder has given his Buy rating due to a combination of factors that highlight Neuronetics’ promising growth trajectory and financial outlook. The recent merger with Greenbrook TMS has positioned the company as a vertically integrated mental healthcare provider, enhancing its potential for growth, scale, and patient reach. This strategic move is expected to drive a significant increase in pro forma revenue, with projections for 2025 indicating a 12%-19% year-over-year growth to between $145 million and $155 million.
Moreover, Neuronetics is on track to achieve positive cash flow by the third quarter of 2025, supported by $22 million in cost synergies from the merger, of which over 90% have already been realized. The company has also strengthened its balance sheet with a $19 million offering, providing the flexibility needed to accelerate growth initiatives. These factors, combined with the expectation of expanding sales and cost synergies, underpin the increased price target of $7, reflecting a more favorable valuation multiple aligned with industry peers.
Stauder covers the Healthcare sector, focusing on stocks such as Atricure, Artivion, and Neuronetics. According to TipRanks, Stauder has an average return of 55.5% and a 64.00% success rate on recommended stocks.
In another report released yesterday, Piper Sandler also maintained a Buy rating on the stock with a $5.50 price target.