Optimistic Buy Rating for Zynex Amid Revenue Decline and Promising NiCO Pulse Oximeter Prospects

In a report released today, Yi Chen from H.C. Wainwright reiterated a Buy rating on Zynex (ZYXI – Research Report), with a price target of $8.00.

Yi Chen has given his Buy rating due to a combination of factors influencing Zynex’s current and future prospects. Despite a significant decline in revenue and a larger-than-expected net loss in the first quarter of 2025, Yi Chen maintains a positive outlook on the company’s potential. This optimism is partly based on the anticipated resolution of payment issues with Tricare, which could improve financial performance in subsequent quarters.
Additionally, the upcoming submission of the 510(k) application for the NiCO pulse oximeter presents a promising opportunity for Zynex to penetrate the lucrative pulse oximetry market. The NiCO device’s advanced technology, which offers precise measurements across different skin pigmentations, positions it favorably against existing products. Yi Chen believes that if the device receives FDA clearance, it could significantly enhance Zynex’s market position and financial results, justifying the Buy rating despite current challenges.