AXNX - Axonics gains as Needham upgrades on conservative guidance

2023-03-24 09:17:11 ET

Shares of MedTech firm Axonics ( NASDAQ: AXNX ) rose pre-market Friday after Needham upgraded it to Buy from Hold with a $71 per share target, arguing that the company's 2023 revenue guidance looked "conservative.'

Axonics ( AXNX ), a developer of minimally invasive products for bladder and bowel dysfunction, expects to record $342M revenue this year with a ~25% YoY growth. That includes $277.5M of sacral neuromodulation (SNM) revenue and $64.5M from Bulkamid, its urethral bulking agent for female stress urinary incontinence.

"We have become more encouraged by AXNX's accelerated revenue growth and progress towards profitability in recent quarters, driven by both SNM and Bulkamid," Needham analyst Mike Matson wrote.

Expecting Axonics ( AXNX ) to sustain growth momentum thanks to its direct-to-consumer ad campaign, market expansion, and new products, F15 and R20, the analyst projects SNM sales growth to reach 25% despite a high-single-digit market growth.

"And AXNX's share price is now well below its 52-week high and its valuation has become more attractive in our view," Matson argued.

Read: Seeking Alpha analyst Zach Bristow issued a Buy rating on AXNX in February, citing an attractive valuation given the sales multiples and topline growth.

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