In a report released yesterday, John Young CFA from Canaccord Genuity maintained a Buy rating on Pulmonx (LUNG – Research Report), with a price target of $16.00.
John Young CFA has given his Buy rating due to a combination of factors that highlight Pulmonx’s potential for sustained growth and profitability. The company’s leadership, with Steve Williamson as CEO and Mehul Joshi as CFO, is capitalizing on their commercial experience to implement initiatives aimed at achieving a long-term growth target of over 20%. These initiatives are expected to start benefiting the US market in the latter half of 2025, supporting the company’s path to profitability.
Additionally, Pulmonx is trading at an attractive valuation compared to its peers, with a 2025 estimated enterprise value to sales ratio of 2.8x, while the broader Med-Tech group trades at 5.2x. The company’s revenue guidance for FY25 suggests significant growth driven by international strength in the first half and US market expansion in the second half. Furthermore, Pulmonx is maintaining discipline in operating expenses, projecting a gross margin of approximately 74% for FY25 and demonstrating confidence in reaching cash flow profitability with the cash on hand.
Young CFA covers the Healthcare sector, focusing on stocks such as Merit Medical Systems, Staar Surgical, and Pulmonx. According to TipRanks, Young CFA has an average return of 16.6% and a 76.00% success rate on recommended stocks.
In another report released on March 10, D. Boral Capital also initiated coverage with a Buy rating on the stock with a $17.00 price target.