Positive Expectations for Tactile Systems Technology Growth
B.Riley's Positive Outlook on Tactile Systems Technology
Recently, B.Riley initiated coverage on Tactile Systems Technology (NASDAQ: TCMD) and expressed a favorable perspective by assigning it a Buy rating. They set an optimistic price target of $23.00 for the company, emphasizing its strategy of margin expansion through advanced technology and improved workflow. The experts at B.Riley believe that Tactile Systems is set for substantial growth, largely due to new product introductions and the backing of strong clinical support.
The Company and Its Offerings
Tactile Systems specializes in the production of compression garments designed to treat various medical conditions, such as lymphedema and bronchiectasis. In the latest financial update, the company showcased a remarkable 7% year-on-year increase in sales, along with a significant 49% surge in adjusted EBITDA during the second quarter of 2024. Such results point towards the growing demand for their innovative products, further evidenced by operating cash flow hitting $13 million in the same period.
Analyzing the Stock Valuation
Despite these encouraging financial indicators, B.Riley underscores that Tactile Systems' current stock prices are lower than its peers on the market. The company's stock trades at an enterprise value to sales (EV/sales) ratio of 1.0x and an enterprise value to EBITDA (EV/EBITDA) of 8.4x, especially when compared to average figures of 2.4x and 11.7x respectively within the industry. This discrepancy highlights a potential undervaluation of the stock, which the market has yet to fully recognize.
Future Prospects and Recent Developments
Looking ahead, B.Riley's price target of $23.00 signifies strong confidence in Tactile Systems' strategic direction and its ability to successfully enhance its profit margins. As the organization continues to streamline its operations and bring innovative products to market, analysts believe its financial performance will reflect these improvements.
Important Company Updates
In recent news, Tactile Systems Technology reported a 7% increase in total revenue, reaching $73.2 million during the second quarter of 2024. The rise was driven by solid growth in their Lymphedema and Airway Clearance product lines. However, the company did adjust its full-year revenue guidance for 2024, now forecasting between $293 million and $298 million, primarily due to stricter Medicare requirements.
Nimbl's Medicare Approval
Tactile's new product, Nimbl, recently received Medicare billing approval. This is a significant advancement for the company, as it positions them to offer cutting-edge therapies for home care, targeting chronic health issues such as lymphedema and chronic edema. The device connects with the Kylee™ app, enhancing the treatment experience for patients.
Analyst Perspectives and Market Standing
While Tactile faces challenges related to Medicare, the positive sentiment continues, as noted by BTIG, which maintains a Buy rating with a $16.00 price target. The experts believe that favorable developments could positively influence the company's market performance. Furthermore, Tactile Systems is poised to advance its technological infrastructure, planning to roll out an e-prescribing tool shortly.
InvestingPro Insights on Tactile Systems
Current insights align with B.Riley’s optimistic standpoint. Tactile Systems Technology has a market valuation of $333.14 million, showcasing a robust gross profit margin of 72.07% over the last year. Their price-to-earnings (P/E) ratio stands at 11.33, potentially appealing to investors seeking growth at an attractive price.
Valuation and Stability Indicators
Noteworthy tips highlight the company’s substantial shareholder yield, indicating efficient returns to investors. The strong free cash flow yield further illustrates Tactile’s ability to produce significant cash relative to its stock price. Also, the company’s liquid assets surpass its short-term liabilities, a reassuring sign of financial strength.
Frequently Asked Questions
What is B.Riley's price target for Tactile Systems Technology?
B.Riley has set a price target of $23.00 for Tactile Systems Technology, indicating a bullish outlook on the stock.
What financial performance did Tactile Systems post recently?
The company reported a 7% increase in sales and a 49% increase in adjusted EBITDA during the second quarter of 2024.
What significance does Nimbl's Medicare approval hold?
The Medicare billing approval for Nimbl represents a significant advancement in Tactile's capabilities to provide home-based care solutions for chronic conditions.
How does Tactile Systems' stock compare to its peers?
Tactile Systems' stock is currently trading at multiples lower than the average of its peers, signaling a potential undervaluation.
What are Tactile Systems’ projected revenue figures for the year?
The company has revised its full-year revenue guidance for 2024 to a range of $293 million to $298 million.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data shapes the opinions presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. The author does not guarantee the accuracy, completeness, or timeliness of any material, providing it "as is." Information and market conditions may change; past performance is not indicative of future outcomes. If any of the material offered here is inaccurate, please contact us for corrections.
Related Articles
- OKX Wallet Unveils Innovative Tool for SOL Account Management
- Copenhagen's Green Tourism Initiative: A Shift for Sustainability
- Copenhagen's Bold Tourism Strategy for a Sustainable Future
- Legal Action for Investors of WEBTOON Entertainment Ltd.
- Fun88 Expands Partnership with Dale Steyn for Promotion
- Investors Encouraged to Join Sprinklr Class Action for Justice
- Candidates for Leadership of Japan's Ruling Party: Who Stands Out?
- Elon Musk Advocates for Solar Energy as Future Power Source
- WSPN Joins Forces with Conflux to Innovate Digital Payments
- Citi's Long-Term Forecast Reveals Potential Yen Strength
Recent Articles
- Cumberland Pharma Faces Turbulence as Stock Hits New Low
- Citi Maintains Neutral Rating for Helmerich & Payne Stock
- Vital Therapies Faces Market Turmoil with VTLE Stock Drop
- Scotiabank Projects Positive Outlook for Concentrix Amid Challenges
- Scotiabank Reaffirms $165 Price Target on Snowflake Shares
- Bank of Mexico's Strategic Rate Cut: Insights and Impacts
- Genmab's Exciting Restricted Stock Units and Warrant Grants
- Transforming Corporate Wellness with REWIRE 4 WELLBEING
- Essential Guide to Responsible Cannabis Usage and Safety Tips
- Super Micro Computer's Recent Legal Developments Explained
- SCTE TechExpo24 Highlights Future-Ready Broadband Innovations
- Exploring Wynn Resorts' Recent Options Activity and Insights
- Understanding BP's Recent Options Activity Trends and Insights
- Insights into KE Holdings: The Recent Surge in BEKE Options Activity
- Explore Silver Mining Stocks Aiming for Growth and Stability
- Alarming Rise in Argentina's Poverty Rate Hits 53% Mark
- Discussions on CEO Compensation at OpenAI by Board Members
- Interest Rate Predictions: HSBC's Insights for 2026 Recovery
- Inspire Veterinary Partners Strategically Sells Kauai Clinic
- BMO Sticks with Underperform Rating for Ralph Lauren Shares
- Star Princess Launches Journey with Historic Float Out Ceremony
- Canaccord Genuity Affirms Buy Rating for Lilium N.V. Stock
- Revolutionizing Training with Big League AI for Hitting Skills
- Challenges Ahead for TVGN as Stock Hits New Low
- Celebrating Leadership Excellence: IPA Awards 2024 Highlights
- CarMax Holds Steady with CFRA's Buy Rating and Price Target
- Trinseo Declares Quarterly Dividend of $0.01 Amid Growth Plans
- Centessa Pharmaceuticals: Growth and Promising Drug Pipeline
- Darrell Issa's Recent Treasury Bill Transactions Explained Clearly
- Morgan McGarvey's Investment Moves and Apple's Market Status
- Onconova Therapeutics Stock Dips to New Lows: What’s Next?
- Senegal's Debt Overhaul: New Insights into Economic Challenges
- Michael Saylor Celebrates Bitcoin Surge with Enthusiastic Message
- Bitcoin (BTC) Approaches Milestone as Bullish Sentiment Grows
- Super Micro Computer Faces Scrutiny Amid Stock Volatility
- Exciting Releases: Disney’s Moana 2 and Mufasa Hit IMAX Soon
- Henry Schein Launches Hotline for Hurricane Helene Support
- BM3EAC Corp. Reports on 2024 Interim Performance Metrics
- Important Update for Investors in Coinbase Global, Inc. (COIN)
- Investigation Launched by GPM on Domino's Pizza (DPZ) Issues
- Analysts Anticipate PCE Report As Fed's Rate Decision Looms
- Understanding Mobileye Global: Trends in Options Trading
- Trinseo Declares New Quarterly Dividend for Shareholders
- Unveiling Recent Options Trends for NetEase (NTES) Investors
- Investigation Launched: Bumble Inc. Faces Potential Legal Issues
- Walgreens Boot Alliance Faces Investor Scrutiny Over Violations
- Insights into Vital Energy's Recent Options Trading Patterns
- Xerion Advanced Battery's Innovations Highlighted at Rho Motion
- GRM Information Management Secures Storage Deal for Major Brand
- Bitcoin Price Surges Over 3% in a Day: What's Next?