HC Wainwright Lowers SRTS Price Target to $8.00, Maintains "Buy" Rating

HC Wainwright & Co. has lowered the price target for Sensus Healthcare (SRTS) from $12.00 to $8.00, a 33.33% decrease, while maintaining a "Buy" rating. Historically, analysts have consistently lowered price targets while maintaining a positive outlook. The average target price for SRTS is $9.20 with a high estimate of $12.00 and a low estimate of $6.00, implying an upside of 189.31% from the current price.

Sensus Healthcare, Inc. (SRTS), a leading provider of advanced medical devices for non-invasive treatments, recently released its Form 10-Q report for the second quarter of 2025. The report highlights several financial and operational challenges that the company faced during this period. Key financial highlights include a notable decrease in revenue and increased operating expenses, which significantly impacted the company's overall financial health.

The report indicates that revenues for the three months ended June 30, 2025, totaled $7.3 million, a decrease of 20.7% compared to the same period in 2024. This decline was primarily driven by a lower number of units sold to a large customer. Gross profit for the same period decreased by 46.3%, with a gross profit percentage of 39.7%, due to lower sales and higher costs. The company reported a net loss of $1 million for the three months ended June 30, 2025, compared to a net income of $1.6 million in the same period in 2024, reflecting higher operating expenses and lower revenue.

The company's business highlights show that the United States remains the primary market, accounting for 92% of total revenue for the three months ended June 30, 2025. Revenue from China contributed 8% during the same period, indicating a stable presence in the international market. The decrease in revenue was primarily driven by a lower number of units sold to a large customer in the three months ended June 30, 2025 compared to the same period in 2024.

Sensus Healthcare anticipates that proceeds from maturing cash equivalents, borrowing capacity under its existing line of credit, and access to capital resources will be sufficient to meet operating capital and funding requirements for the next 12 months. The company is also monitoring inflationary pressures and taking actions to minimize their effects on product cost and sales.

Despite the challenges, Sensus Healthcare has made significant strides in expanding its market reach. The company reported a 27% increase in FDA treatment volume over Q1, indicating improved efficiency and growing patient awareness of SRT as a preferred treatment option. Additionally, Sensus Healthcare broadened its US commercial footprint by appointing Radiation Oncology Systems as its primary distribution partner for the hospital-based oncology segment, which is expected to accelerate growth. The company delivered 19 SRT systems in Q2, including 4 to China, reflecting growing international demand for non-invasive therapeutic solutions.

However, the company faces potential reimbursement challenges. A proposed local coverage determination (LCD) by Medicare could limit reimbursement for ultrasound use with SRT 100 vision systems, causing a temporary stall in domestic sales momentum. Additionally, general and administrative expenses increased to $2 million in Q2 2025 from $1.6 million in Q2 2024, due to higher professional fees and compensation.

HC Wainwright & Co. has recently lowered the price target for Sensus Healthcare (SRTS) from $12.00 to $8.00, a 33.33% decrease, while maintaining a "Buy" rating. Historically, analysts have consistently lowered price targets while maintaining a positive outlook. The average target price for SRTS is $9.20 with a high estimate of $12.00 and a low estimate of $6.00, implying an upside of 189.31% from the current price.

In conclusion, Sensus Healthcare faces significant financial and operational challenges in the second quarter of 2025. However, the company's expansion efforts and positive market outlook suggest potential growth opportunities in the future.

References:
[1] https://www.tradingview.com/news/tradingview:448e1301c91bd:0-sensus-healthcare-inc-sec-10-q-report/
[2] https://finance.yahoo.com/news/sensus-healthcare-inc-srts-q2-150242447.html
[3] https://stockinvest.us/stock/SRTS