Heart Test Laboratories price target lowered to 35c from $3 at Maxim

Maxim lowered the firm’s price target on Heart Test Laboratories to 35c from $3 but keeps a Buy rating on the shares. The firm notes that dilution, particularly due to the higher number of shares being issued as a result of capital raises, is driving its price target cut. Heart Test Laboratories stock trades at a 0.2-times multiple to the firm’s 2025 expected revenue of $7.7M, a discount to the peer group average of 3.8-times, though a discount is justified due to Heart Test’s earlier stage, lack of profitability, and the likelihood of additional capital needs in FY25, the analyst tells investors in a research note.