Accuray (ARAY) Stock: Analyst Raises Price Target to $5.00, Maintains Buy Rating

Accuray (ARAY) has received a "Buy" rating and a raised price target of $5.00 from BTIG analyst Maria Thibault, representing a 25% increase from the previous target of $4.00. The analyst's positive outlook on the company's future performance comes as part of ongoing analysis, released on August 14, 2025. Investors may take note of this development as an indicator of Accuray's strengthening market position and forecasted performance in the medical device sector.

Accuray (ARAY), a leading provider of radiation therapy systems, has received a "Buy" rating and a raised price target of $5.00 from BTIG analyst Maria Thibault. This update, released on August 14, 2025, signifies a 25% increase from the previous target of $4.00. The analyst's positive outlook on the company's future performance is a notable development for investors, particularly in the medical device sector.

Maria Thibault's analysis highlights several key factors contributing to Accuray's strong market position. The analyst's research indicates that Accuray's recent financial performance, including its fiscal fourth-quarter revenue of $127.5 million, has exceeded analyst estimates by nearly $4 million. This performance was driven by a 14% year-over-year increase in revenue, with a significant boost in service revenue and a narrowing net loss [3].

Accuray's financial health is further bolstered by its improved gross profit margin, which climbed to 30.6% from 28.6%. The company's ability to navigate supply chain challenges and shift sales mixes has demonstrated resilience and efficiency. Additionally, a recent debt refinance has placed Accuray on firmer financial footing, positioning it for sustained growth [3].

Looking ahead, Accuray's management has guided for revenue between $471 and $485 million for the next fiscal year, with potential EBITDA hitting $35 million. This optimistic outlook aligns with the broader trend of growing global demand for advanced healthcare technology. Analysts and sector peers maintain a positive outlook, suggesting Accuray's momentum is likely to continue despite wider economic pressures [3].

The analyst's recommendation comes at a time when Accuray has shown consistent earnings surprises, surpassing consensus EPS estimates in four of the last four quarters. The company's recent quarterly earnings per share of $0.01, compared to the Zacks Consensus Estimate of $0.05, represented a significant earnings surprise of +80% [4].

Investors should consider this positive rating and price target increase as an indicator of Accuray's strengthening market position and forecasted performance. While the stock has underperformed the market so far this year, the analyst's positive outlook and the company's recent financial performance suggest potential upside. The Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions, currently ranks Accuray at #3 (Hold), indicating a neutral near-term performance expectation [4].

In conclusion, Accuray's strong financial performance and positive analyst ratings suggest a promising outlook for the company. Investors should closely monitor the company's earnings call and future earnings expectations to gauge its potential for continued growth in the medical device sector.

References:
[1] https://www.marketbeat.com/all-access/analyst-rankings/1832/
[2] https://www.marketscreener.com/news/earnings-flash-aray-accuray-fiscal-q4-revenue-127-5-million-vs-factset-four-analyst-est-123-8-ce7c51d8d88cf523
[3] https://finimize.com/content/accuray-delivers-growth-and-optimism-with-upbeat-revenue-outlook
[4] https://www.nasdaq.com/articles/accuray-aray-reports-break-even-earnings-q4