In a report released today, Sean Lee CFA from H.C. Wainwright reiterated a Buy rating on Senseonics Holdings, with a price target of $1.40.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Sean Lee CFA has given his Buy rating due to a combination of factors, primarily the strategic transition of Senseonics’ commercial operations in-house. This move follows an amicable agreement with Ascensia Diabetes Care, which has been the exclusive distributor of Eversense products. By bringing the commercial team in-house, including key personnel such as Ascensia’s President of CGM, Brian Hansen, Senseonics aims to enhance its commercial capabilities and invest more in direct-to-consumer outreach. This transition is expected to better position the company for significant growth over the next three years.
Furthermore, Sean Lee CFA views the increased expenses associated with this transition as a worthwhile investment, as it is anticipated to lead to improved gross margins. The company projects a gross margin increase to approximately 50% in 2026 and potentially up to 70% as commercialization scales, compared to the 32-37% expected in 2025. Additionally, the recent $100M raised through debt financing is expected to support the company’s cash runway into 2027, further solidifying its financial position. The valuation of SENS shares is supported by a risk-adjusted net present value analysis and comparable analysis, leading to a 12-month price target of $1.40 per share.
In another report released yesterday, Mizuho Securities also reiterated a Buy rating on the stock with a $2.00 price target.