Procept BioRobotics initiated with a Perform at Oppenheimer

Oppenheimer initiated coverage of Procept BioRobotics (PRCT) with a Perform rating. Procept has pioneered the Aquablation image-guided high-pressure, non-thermal waterjet ablation system for benign prostatic hyperplasia treatment. The firm notes that Aquablation’s clinical value proposition has been robustly demonstrated in multiple clinical trials, with an impressive 4-year revenue CAGR of about 75%. FY25 guidance at $323M seems conservative, and a Q2 beat is expected, Oppenheimer adds. The firm’s rating reflects its assessment of risk reward at these levels. Oppenheimer is constructive on the science but needs to get comfortable with utilization in a fragmented market and the risks with a potential 20% cut to physician payment rates.