Pulmonx: Balancing Growth Potential and Financial Challenges with a Hold Rating

Pulmonx (LUNG – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Larry Biegelsen from Wells Fargo maintained a Hold rating on the stock and has a $6.00 price target.

Larry Biegelsen has given his Hold rating due to a combination of factors that reflect both potential and challenges for Pulmonx. The company is focusing on re-accelerating its growth in the US market, which has been experiencing a slowdown over the past five quarters. Pulmonx is implementing various strategies to enhance awareness among US physicians, such as direct-to-patient advertising and peer-to-peer education, which are expected to show results in the latter half of 2025.
Additionally, the full launch of the LungTrax platform, which aims to streamline patient diagnosis and procedure workflow, is a positive development. However, while early results from LungTrax and the company’s pipeline opportunities in Japan and with AeriSeal are promising, these are expected to contribute more significantly to growth in the mid to long term. The reaffirmation of a 20% top-line growth target suggests optimism, but the current cash position and burn rate indicate that financial sustainability is still a concern. These mixed factors contribute to the Hold rating as the company works towards achieving its growth objectives.

In another report released on May 23, Citi also maintained a Hold rating on the stock with a $4.15 price target.

Based on the recent corporate insider activity of 30 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 LUNG in relation to earlier this year.