PROCEPT BioRobotics Today
PRCT
PROCEPT BioRobotics
$88.94 +3.03 (+3.53%) (As of 11/15/2024 ET)
- 52-Week Range
- $31.57
▼
$103.81 - Price Target
- $89.50
Surgical robotics company PROCEPT BioRobotics Co. NASDAQ: PRCT developed the AquaBeam Robotic System for the treatment of benign prostatic hyperplasia (BPH) among aging men. The company went public during the special purpose acquisition company (SPAC) mania in 2021. However, unlike most SPACs, PROCEPT has been able to maintain its stock price near the higher range of its trading history. Investors who hear the term robotic surgery system wonder if PROCEPT could be the next Intuitive Surgical Inc. NASDAQ: ISRG in the earlier phases. While there are similarities like the razor and blade revenue model, PROCEPT’s robotic surgery system focuses on a single procedure for now.
PROCEPT BioRobotics operates in the medical sector and competes with medical robot and device makers like Intuitive Surgical, Medtronic PLC NYSE: MDT, and Zimmer Biomet Holdings NYSE: ZBH.
Benign Prostatic Hyperplasia Occurs More as Men Age
Benign Prostatic Hyperplasia, commonly known as prostate enlargement, is a common condition that men get as they age. Almost 50% of men aged 50 to 61 have BPH. Around 70% of men between 60 and 69 have BPH. Around 80% of men over 70 and 90% of men over 80 years of age have BPH. An estimated 14 million men in the United States and 30 million men worldwide have BPH. BPH can cause problems with urination, including pain, weakness, incontinence, and the need to urinate more often. BPH can lead to more complications, ranging from kidney damage, bladder stones, and urinary tract infections (UTIs). The market for BPH treatment in the United States exceeds $20 billion.
AquaBeam Robotic System Executes Aquablation Therapy
A minimally invasive surgical procedure known as Aquablation is used to treat lower urinary tract symptoms (LUTS) due to BPH. Aquablation utilizes a high-velocity, heat-free water jet to remove excess prostate tissue. The AquaBeam Robotic System provides real-time ultrasound and cystoscopic imaging to construct a 3D map of the prostate. This enables the surgeon to precisely specify which areas of the prostate to remove, creating a personalized plan tailored to each patient. The robotically controlled, heat-free water jet precisely removes the tissue while minimizing the risks associated with heat-based therapies.
The Business Model of the AquaBeam Robotic System
PROCEPT sells the AquaBeam Robotic Systems for around $350,000 per unit. Like Intuitive Surgical, PROCEPT derives recurring revenues from the consumables, such as the single-use disposable handpiece AquaBeam scope used in each procedure and additional products and maintenance services. Hospitals and ambulatory and surgical centers are the target customers. The system has been used in over 30,000 procedures. The company will eventually add more procedures and eventually move towards getting procedures approved for treating prostate cancer.
PRCT Stock is in a Rectangle Trading Channel
The daily candlestick chart for PRCT illustrates a rectangle channel pattern. This channel is comprised of the upper trendline resistance at $68.94 and the lower trendline support at $53.95. PRCT has been trading in the rectangle channel since May 2024. The two upper trendline breakout attempts both failed, sending shares back down to the lower trendline before coiling. The daily relative strength index (RSI) is stalled around the 45-band. Pullback support levels are at $142.18, $138.85, $135.17, and $133.07.
Strong Revenue Growth in Q3 2024
PROCEPT reported a Q3 2024 EPS loss of 50 cents. Revenues grew 61.2% YoY to $53.35 million, beating the $50.1 million consensus estimates. U.S. handpiece and consumables revenue jumped 101% YoY to $27.3 million. The company sold 47 robotic systems. U.S. system and rental revenue rose to $17.8 million. International revenue rose 79% YoY to $5.7 million.
PROCEPT BioRobotics Stock Forecast Today
12-Month Stock Price Forecast:$89.500.63% UpsideModerate BuyBased on 6 Analyst Ratings | High Forecast | $105.00 |
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| Average Forecast | $89.50 |
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| Low Forecast | $69.00 |
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PROCEPT BioRobotics Stock Forecast DetailsThe company raised its full-year 2024 revenue guidance to $217 million, up from $213.5 million, compared to consensus estimates of $213.74 million.
PROCEPT BioRobotics CEO Reza Zadno commented, “We are pleased to report another successful quarter with annual revenue growth of 61%. This outstanding performance across all segments of the business reflects continued focus on penetrating BPH hospitals, increasing utilization, and driving operational efficiencies across the organization.“
Zadno concluded, “Additionally, we achieved record gross margins of 59% and demonstrated significant operating expense leverage.”
PROCEPT BioRobotics analyst ratings and price targets are at MarketBeat. There are six analyst ratings on PRCT stock, which is comprised of all Buys. The consensus price target is 8% higher at $66.00. PRCT has an 11.3% short interest.
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