Shidlovski
Piper Sandler initiated coverage of Procept BioRobotics (NASDAQ:PRCT) with a overweight rating, citing the growth potential for its AquaBeam robotic system for the treatment of benign prostatic hyperplasia, or enlarged prostate.
Piper said that the AquaBeam system, which uses water therapy to resect prostate tissue, has been shown in studies to be safer and just as effective as the current standard of care, transurethral resection of the prostate, or TURP, “making it a logical choice for doctor and patients.” The investment bank added that reimbursement for the product is “strong,” with coverage by all local Medicare administrative contractors and most major private insurers.
The bank expects Procept’s topline to grow more than 40% per year for the next three years as the company implements its market building strategy, with key drivers being under-penetration of a large market and mounting clinical evidence supporting the procedure.
“We believe this level of growth is a standout among small and mid-sized names, and believe the current share price discounts the durability of this growth,” Piper added.
The bank set its price target for Procept at $42.
More on Procept:
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PROCEPT BioRobotics Corporation (PRCT) Q2 2023 Earnings Call Transcript
Procept GAAP EPS of -$0.56, revenue of $33.1M
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