PROCEPT BioRobotics Adjusts Outlook Amid Shift in System Replacement Forecasts

PROCEPT BioRobotics Corporation (NASDAQ:PRCT) has revised its system replacement forecasts, with Wells Fargo maintaining an Overweight rating and reducing the price target from $75 to $58. The company no longer expects any system replacements in H2 2025, reversing earlier projections of 10 replacements. The AquaBeam Robotic System is a flagship product for minimally invasive urologic procedures.

Title: PROCEPT BioRobotics Corporation (NASDAQ:PRCT) Adjusts System Replacement Forecasts, Maintains Overweight Rating

ProCEPT BioRobotics Corporation (NASDAQ:PRCT), a leader in urology surgical robotics, has revised its system replacement forecasts. Wells Fargo, an investment research firm, has maintained its Overweight rating on the company but reduced its price target from $75 to $58 [1]. The change comes following management's announcement that it no longer anticipates any system replacements in the second half of 2025, reversing earlier projections of roughly 10 replacements this year.

The AquaBeam Robotic System, PROCEPT's flagship product, is a cutting-edge image-guided device intended for minimally invasive urologic procedures. The system's single-use disposable handpiece provides recurring business growth for the company. PROCEPT's total addressable market (TAM) for BPH-related diseases is estimated to reach $20 billion in the U.S. market [2].

Wells Fargo pointed out that PROCEPT's installed base, which is primarily three years old, has overstated the need for replacements, even though the company forecasts system life to be five to seven years. The firm currently projects 10 replacements at an average selling price of $350,000 for 2026 and expects PROCEPT management to discuss its replacements and trade-in strategy when delivering guidance for the upcoming year [1].

The company reported its Q2 FY25 results on August 6, posting 48% growth in revenue and a 20% increase in its U.S. system install base. The company exited the quarter with $306 million in cash and $52 million in total debts [2]. PROCEPT anticipates achieving break-even by FY27, driven by 30% revenue growth, 5% price improvements, and 25% growth from system and disposable handpiece sales [2].

Key risks include competition from traditional TURP procedures and laser-based therapies, as well as the need to expand its sales force and engage with more surgeons in target hospitals. PROCEPT aims to target 2,700 hospitals that perform respective BPH procedures in the U.S. market [2].

References
[1] https://ca.finance.yahoo.com/news/procept-biorobotics-prct-outlook-adjusted-151509614.html
[2] https://seekingalpha.com/article/4813845-procept-biorobotics-increasing-average-selling-price-initiate-at-buy