On Monday, Sensus Healthcare (NASDAQ:SRTS) shares saw its price target increased by H.C. Wainwright from $8.00 to $10.00, while the firm maintained a Buy rating on the stock.
The revision follows Sensus Healthcare's first-quarter financial report, which showed a significant year-over-year revenue surge of 212% to $10.7 million, surpassing the analyst's expectations of $4.3 million.
The company reported a net income of $2.3 million, or $0.14 per share, which was notably higher than the projected loss of $0.7 million. This financial growth was partly attributed to the increased shipment of SRT systems, with 26 units shipped in the first quarter of 2024, up from 10 in the same quarter of the previous year.
Sensus Healthcare also marked a milestone by selling the first SRT-100 Vision system in Asia and executing the first commercial sale of an SRT-100 for veterinary use outside the United States. In preparation for growing customer demand, the company has been actively building its inventories.
The Fair Deal Agreement, a recurring revenue program for the SRT-100 Vision, has been well received since its launch, according to the company's management. Sensus has partnered with CureRays to oversee and supervise the program, aiming to enhance patient safety. This program is expected to complement Sensus's existing sales models and is seen as a potential driver for future unit shipments.
With the company on track to ship an estimated 80 SRT systems in 2024, the analyst's valuation is based on a projected revenue per share of $2.14 and an enterprise value-to-revenue multiple of 4.0x. This calculation underpins the raised 12-month price target of $10 per share, reaffirming the Buy rating on Sensus Healthcare's stock.
InvestingPro Insights
Following the positive momentum of Sensus Healthcare's first-quarter performance, InvestingPro data reflects a robust financial posture for the company. Sensus holds a market capitalization of $86.72 million, indicative of its growing presence in the market. With a P/E ratio at 13.32 and an adjusted P/E ratio for the last twelve months as of Q1 2024 at 18.78, the company presents an attractive valuation for investors considering its recent revenue surge.
InvestingPro Tips highlight the company's solid financial foundation, with Sensus holding more cash than debt on its balance sheet, and its net income is expected to grow this year. These factors are critical for investors looking for companies with a strong balance sheet and growth potential. Additionally, the stock's significant return over the last week and high return over the last year underscore the company's strong performance in the market. The robust revenue growth of 212% in Q1 2024 further bolsters the company's prospects.
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