Procept BioRobotics (PRCT): A Strategic Buy in a Rotating MedTech Sector?

The MedTech sector, long a bellwether for innovation in healthcare, has entered a phase of recalibration in 2025. Amid macroeconomic turbulence and regulatory shifts, investors are scrutinizing long-term value propositions more rigorously than ever. Procept BioRobotics (PRCT), a niche player in robotic urology, has emerged as a case study in navigating this volatility. While its stock has faced mixed analyst sentiment, a closer look at its financial performance, strategic positioning, and sector tailwinds suggests PRCT could be a compelling long-term bet.

Financial Momentum and Strategic Execution

Procept BioRobotics has demonstrated resilience in a competitive landscape. For the third quarter of 2025, the company reported $83.3 million in revenue, a 43% year-over-year increase, driven by robust demand for its HYDROS® Robotic System. U.S. handpiece and consumables revenue alone surged 50% to $44.4 million, reflecting strong adoption of its AquaBlation therapy for benign prostatic hyperplasia (BPH). The installed base of robotic systems in the U.S. now stands at 653 units, a testament to the platform's clinical and commercial appeal.

Looking ahead, Procept has set ambitious revenue targets of $325.5 million for 2025 and $410–430 million for 2026, representing 26–32% growth. This trajectory is underpinned by a strategic focus on expanding market share in BPH, where AquaBlation has achieved approximately 50% adoption within existing accounts. The company also aims to install over 200 robots in 2025 and is developing a prostate cancer treatment for commercialization by 2028. These initiatives align with broader trends in minimally invasive urology, where robotic systems are increasingly favored for their precision and efficiency.

Sector Tailwinds: Robotics and Urology Converge

The MedTech sector's growth in robotic surgery is being driven by three key factors: technological innovation, demographic shifts, and cost efficiency. In urology, robotic systems now account for 40–45% of procedures in the U.S., particularly in complex surgeries like prostatectomies. This adoption is fueled by advancements such as AI-assisted navigation and improved imaging, which enhance surgical outcomes.

Moreover, the aging global population is driving demand for treatments of urological conditions like prostate cancer and kidney stones. Procept's focus on urology positions it to capitalize on this demographic tailwind, especially as its AquaBlation therapy offers a less invasive alternative to traditional procedures. The company's partnerships with Integrated Delivery Networks amplify its reach.

Navigating Analyst Skepticism

Despite its strong fundamentals, PRCT has faced mixed analyst ratings. As of December 2025, 13 analysts have assigned ratings, resulting in a "Moderate Buy" consensus, with 9 buys, 2 holds, 1 sell, and 1 strong buy. Price targets range from $38 to $70, averaging $53.40-a 51.41% potential upside from current levels. Notably, UBS initiated coverage with a "Buy" and $62 target (83.59% upside), while Bank of America downgraded to "Neutral" with a $38 target.

The divergence in ratings reflects broader sector uncertainty. Short-term headwinds have dampened some optimism. However, the "Buy" consensus and upward revisions from firms like Oppenheimer-upgrading to "Outperform" with a $60 target-suggest confidence in Procept's long-term differentiation. Analysts appear to be factoring in the company's ability to scale its installed base and leverage AI-driven innovations, which could reduce procedural costs and expand accessibility.

Macroeconomic and Policy Considerations

The MedTech sector's trajectory in 2025–2026 is being shaped by macroeconomic and policy dynamics. The sector's 2025 revenue of $584 billion is projected to grow 6–7% in 2026, driven by advancements in robotics, AI, and structural heart therapies. Procept benefits from this environment, as its focus on AI integration and digital health aligns with investor priorities.

Regulatory shifts, including FDA reforms, are also critical. While stricter oversight may slow approvals, they reinforce the value of platforms like HYDROS, which have already demonstrated clinical efficacy. Additionally, private equity's growing role in MedTech could provide acquisition opportunities-evidenced by a 16% surge in venture capital investment in 2025-could provide Procept with acquisition opportunities or strategic partnerships to accelerate growth.

Conclusion: A Strategic Buy Amid Sector Rotation

Procept BioRobotics occupies a unique niche in the MedTech sector, combining high-growth urology demand with cutting-edge robotics. While mixed analyst ratings highlight near-term risks, the company's financial performance, strategic clarity, and alignment with macro trends suggest it is well-positioned for long-term success. The key question for investors is whether they are willing to tolerate short-term volatility for exposure to a sector poised for structural growth.

For those with a multi-year horizon, PRCT offers a compelling case: a scalable platform, a clear path to market expansion, and a sector that is increasingly embracing the precision and efficiency of robotic solutions. As the MedTech landscape continues to evolve, Procept's ability to innovate and adapt may prove to be its most valuable asset.