Positive Developments and Strong Financial Performance Drive Buy Rating for Beta Bionics, Inc.

Travis Steed, an analyst from Bank of America Securities, reiterated the Buy rating on Beta Bionics, Inc. (BBNX – Research Report). The associated price target remains the same with $25.00.

Travis Steed’s rating is based on several positive developments for Beta Bionics, Inc. The company reported a strong first quarter with revenue of $17.6 million, surpassing market expectations by 9%. This was largely driven by a significant increase in pharmacy adoption, which exceeded previous forecasts and led to a higher mix of new patients from pharmacies. Consequently, the company has raised its full-year guidance for pharmacy new patient mix and increased its 2025 revenue guidance.
Despite an initial headwind from the increased pharmacy mix, the company’s gross margin in the first quarter was notably higher than expected, and guidance for 2025 gross margins has been raised. This improvement is attributed to higher new patient start expectations, reduced costs, and benefits from an expanding pharmacy install base. Additionally, the type 2 mix of new patient starts showed positive growth. These factors contribute to the potential for increased revenue in 2026, supporting the Buy rating.

Steed covers the Healthcare sector, focusing on stocks such as Abbott Laboratories, Dexcom, and Beta Bionics, Inc.. According to TipRanks, Steed has an average return of 6.9% and a 59.52% success rate on recommended stocks.