Summary: In a recent note, RBC Capital Markets initiated coverage of Zynex stock, a company that manufactures electrotherapy medical equipment. They gave the stock an outperform rating and set a price target of $13 per share, implying a potential upside of more than 63% from its previous close. The firm believes that Zynex could tap into the patient monitoring market, which is worth nearly $4 billion. Analyst Shagun Singh stated that Zynex has a favorable financial profile, with strong revenue growth, high gross margins, and improving profitability. They also mentioned Zynex’s upcoming product launch, the CM-1600 fluid monitoring system, which is expected to contribute to the company’s growth. RBC Capital Markets forecasts that Zynex could achieve sales of $194 million in 2023 and $521 million by 2028, representing a compounded annual growth rate of 22%.
RBC Capital Markets has expressed optimism about the future prospects of Zynex stock, a company that specializes in the production and manufacturing of electrotherapy medical equipment. In a Sunday note, the firm initiated coverage of the stock and gave it an outperform rating, along with a price target of $13 per share. This forecast suggests a potential upside of more than 63% from Friday’s closing price.
Zynex stock has faced some challenges this year, with a decline of nearly 43% since the beginning of 2021. However, RBC believes that the company has the potential to tap into the patient monitoring market, which is estimated to be worth almost $4 billion. This could provide a significant growth opportunity for Zynex.
Analyst Shagun Singh highlighted Zynex’s favorable financial profile, including strong revenue growth of 20-25%, gross margins of nearly 80%, and improving profitability that is expected to reach the mid-to-upper 20s over time. Singh emphasized the importance of Zynex’s management’s execution and ability to build evidence for the future success of the company.
Zynex is also set to launch a new product, the CM-1600 fluid monitoring system, before the end of the year. This product is expected to contribute to the company’s expansion into the patient monitoring market. RBC predicts that Zynex could achieve sales of $194 million in 2023, which could grow to $521 million by 2028, reflecting a compounded annual growth rate of 22%.
Overall, RBC Capital Markets believes that Zynex has the potential for significant growth and advises investors to consider the stock for its potential upside.
Tags: RBC Capital Markets, Zynex stock, electrotherapy, patient monitoring market, financial profile, CM-1600 fluid monitoring system, sales forecast