Sensus Healthcare Inc. (SRTS:NASDAQ) reported preliminary fourth quarter of 2023 (4Q23) financial results that surpassed expectations, according to an H.C. Wainwright & Co. equity research report published on January 22, 2024.
In the report, analysts Dr. Yi Chen and Dr. Raghuram Selvaraju reiterated a Buy rating on SRTS shares with an unchanged US$8.00 price target, representing 139% upside from the US$3.36 current trading price.
The company expects to report over US$12 million in 4Q23 revenue, exceeding the firm's US$10.1 million projection. This performance was attributed to strong demand trends, with over 60 SRT systems shipped in 2023 as utilization of superficial radiotherapy to treat non-melanoma skin cancer continues rising. The analysts anticipates at least 70 SRT system shipments in 2024. For the full year 2023, revenue is forecast to top US$23 million.
Beyond financial results, Sensus highlighted progress on its pipeline, including the TransDermal Infusion System that applies regenerative skin products in a "pain free hair restoration experience." Management believes this system could achieve FDA clearance in early 2024 after submitting a 510(k) application.
"Our price target is derived from an EV/Revenue multiple of 4.0x and projected revenue for the next 12 months (from 4Q23 to 3Q24) at US$1.71 per share, and includes the cash position of US$1.25 per share, assuming 16.4M shares outstanding at the end of 3Q24. Investment risks include, but are not limited to: (1) failure of SRT or TransDermal Infusion systems to achieve commercial success due to reimbursement, penetration rate, and/or competition; and (2) potential dilution risk," the analysts wrote.
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Disclosures for H.C. Wainwright & Co. Sensus Healthcare Inc., January 24, 2024
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H.C. WAINWRIGHT & CO, LLC RATING SYSTEM: H.C. Wainwright employs a three tier rating system for evaluating both the potential return and risk associated with owning common equity shares of rated firms. The expected return of any given equity is measured on a RELATIVE basis of other companies in the same sector. The price objective is calculated to estimate the potential movements in price that a given equity could reach provided certain targets are met over a defined time horizon. Price objectives are subject to external factors including industry events and market volatility.
H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Yi Chen, Ph.D. CFA and Raghuram Selvaraju, Ph.D. , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Sensus Healthcare, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of December 31, 2023 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Sensus Healthcare, Inc..
Neither the research analyst nor the Firm knows or has reason to know of any other material conflict of interest at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
Mr. Selvaraju, who is [the][an] author of this report, is the Chairman of and receives compensation from Relief Therapeutics Holding SA, a Swiss, commercial-stage biopharmaceutical company identifying, developing and commercializing novel, patent protected products in selected specialty, rare and ultra-rare disease areas on a global basis ("Relief"). You should consider Mr. Selvaraju's position with Relief when reading this research report.
The Firm or its affiliates did not receive compensation from Sensus Healthcare, Inc. for investment banking services within twelve months before, but will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Sensus Healthcare, Inc. as of the date of this research report.
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