PRCT Stock Forecast & Price Target

PROCEPT BioRobotics has demonstrated a substantial revenue growth trajectory, with a reported increase of 137% year-over-year in its recent quarter, attributed primarily to strong performance in international markets, particularly the UK. The company has revised its 2024 revenue guidance upward, influenced by a favorable higher average selling price (ASP) outlook and robust procedure volume trends, which have fully recovered as of February. Furthermore, projections indicate an increase in gross margins from 61.1% in FY24 to 64.2% in FY25, with the potential for additional revenue streams from the upcoming HYDROS robotic system cycle, underscoring a solid foundation for future financial performance.

The analysis highlights significant financial challenges for PROCEPT BioRobotics, particularly as 4Q handpiece revenues of approximately $29 million fell below expectations of $33-34 million due to saline shortages impacting elective urology procedures, resulting in around 2,000 fewer procedures performed. The company's EBITDA loss was reported at -$10.3 million, which further deteriorated to an anticipated -$35 million for 2025, primarily driven by higher-than-expected operating expenses. Additionally, recent market trends indicate a broad compression of multiples for high-growth peers, reflecting a shift away from growth-oriented investments, which adds to the negative outlook on the company's stock performance.