Ekso Bionics Holdings Inc. (OTCBB:EKSO) fourth quarter of 2023 (Q423) financial results were in line with estimates, according to H.C. Wainwright & Co. analyst Dr. Swayampakula Ramakanth in a March 5 research note, stating in the report that this positive trend in revenue was expected to continue.
US$4.8 million was reported as revenue, and US$0.22 net loss per share, which Ramakanth compared to the consensus estimate of US$0.11 per share net loss.
Ramakanth noted that "Ekso ended 2023 with cash and cash equivalents of US$8.6M and raised US$3.9M in net proceeds from a secondary offering in
early January, which we believe is sufficient to fund operations through 2024."
With this, Ramakanth updated their model to reflect the financials, projecting US$23.5 million in total revenue, a net loss of US$0.49 per share.
Revenue Growth of 36%
In the report, Ramakanth reported that during Q423, Ekso saw an increase in revenue of 36%. They believed that this increase was caused by a surplus in the placement of ExoNR and Indego devices.
Ekso Bionics' management disclosed that they had booked 38 EksoHealth units, bringing the total number of units placed in 2023 to 151. Throughout the year, the company reported ongoing efforts to strengthen its partnerships with integrated delivery networks (IDNs) and expand its market presence in Europe, the Middle East, Africa (EMEA), and Asia-Pacific (APAC) regions. The continued success in securing multi-unit orders and renewals is expected to drive sustained growth for Ekso Bionics in 2024 and the coming years.
Final CMS Reimbursement
The report stated that Ekso Bionics is currently waiting for the Centers for Medicare & Medicaid Services (CMS) to determine the final reimbursement price for its Indego Personal device. CMS had initially proposed a reimbursement price of US$94,617, which was expected to be revised or finalized in February and take effect on April 1.
However, CMS has postponed its decision and requested that Ekso Bionics provide additional commercial data to support the determination of the final reimbursement price. In the absence of a finalized reimbursement price, CMS may choose to handle claims submitted by Ekso Bionics on an individual basis.
Valuation
In the research note, Ramakanth reiterated their Buy rating on the stock. However, they lowered their target price on the company from US$10 to US$9.25 per share, saying this was "based on the average of three valuation methods, assuming a 11% discount rate: (1) an NPV analysis of projected future revenues through 2030 with a 0% terminal growth rate; (2) an EV/sales analysis using a 5.0x multiple on projected 2030 sales; and (3) a price/earnings analysis using a 20x multiple on projected 2030 earnings." Through this, they came to a target price of US$9.27, which was then rounded down to US$9.25.
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Disclosures for H.C. Wainwright & Co., Ekso Bionics Holdings Inc., March 5, 2024
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H.C. Wainwright & Co, LLC (the “Firm”) is a member of FINRA and SIPC and a registered U.S. Broker-Dealer.
I, Swayampakula Ramakanth, Ph.D., Sean Lee, Arthur He, Ph.D. and Li Chen, 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 Ekso Bionics Holdings, Inc. (including, without limitation, any option, right, warrant, future, long or short position).
As of February 29, 2024 neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Ekso Bionics Holdings, 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. The firm or its affiliates received compensation from Ekso Bionics Holdings, Inc. for non-investment banking services in the previous 12 months. The Firm or its affiliates did not receive compensation from Ekso Bionics Holdings, 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 Ekso Bionics Holdings, Inc. as of the date of this research report. The securities of the company discussed in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is no guarantee of future results. This report is offered for informational purposes only, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such would be prohibited. This research report is not intended to provide tax advice or to be used to provide tax advice to any person. Electronic versions of H.C. Wainwright & Co., LLC research reports are made available to all clients simultaneously. No part of this report may be reproduced in any form without the expressed permission of H.C. Wainwright & Co., LLC. Additional information available upon request. H.C. Wainwright & Co., LLC does not provide individually tailored investment advice in research reports. This research report is not intended to provide personal investment advice and it does not take into account the specific investment objectives, financial situation and the particular needs of any specific person. Investors should seek financial advice regarding the appropriateness of investing in financial instruments and implementing investment strategies discussed or recommended in this research report. H.C. Wainwright & Co., LLC’s and its affiliates’ salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies that reflect opinions that are contrary to the opinions expressed in this research report. H.C. Wainwright & Co., LLC and its affiliates, officers, directors, and employees, excluding its analysts, will from time to time have long or short positions in, act as principal in, and buy or sell, the securities or derivatives (including options and warrants) thereof of covered companies referred to in this research report. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data on the company, industry or security discussed in the report. All opinions and estimates included in this report constitute the analyst’s judgment as of the date of this report and are subject to change without notice. Securities and other financial instruments discussed in this research report: may lose value; are not insured by the Federal Deposit Insurance Corporation; and are subject to investment risks, including possible loss of the principal amount invested.
