BTIG analyst Marie Thibault has maintained their neutral stance on SENS stock, giving a Hold rating on August 19.
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Marie Thibault has given her Hold rating due to a combination of factors surrounding Senseonics Holdings’ recent strategic decisions. The company is transitioning the commercialization and distribution of its Eversense 365 and future products back in-house from its partnership with Ascensia Diabetes Care. This move is expected to improve revenue recognition and gross margins, as Senseonics will no longer need to share revenue with Ascensia. However, there are uncertainties regarding the costs associated with this transition, such as potential termination fees and the expenses needed to build a robust sales and marketing infrastructure.
Marie Thibault also notes that while the company anticipates significant margin improvements by 2026, these gains might be counterbalanced by the increased operating expenses required to establish a large salesforce and marketing teams. This is crucial for the company to effectively compete with established systems and expand its market share. Additionally, while the recent financing rounds provide the necessary capital for these initiatives, the success of this strategy remains to be seen. The upcoming conference call is expected to provide more clarity on the transaction details and future outlook, which are currently under review.
Thibault covers the Healthcare sector, focusing on stocks such as Irhythm Technologies, Accuray, and Orchestra BioMed Holdings. According to TipRanks, Thibault has an average return of -2.7% and a 39.36% success rate on recommended stocks.
In another report released on August 19, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $0.50 price target.