PRCT - Procept BioRobotics stock rises as KeyBanc starts coverage with outperform rating

Shares of Procept BioRobotics ( NASDAQ: PRCT ) have added ~10% to $34 in Friday afternoon trading, helped by KeyBanc Capital Markets initiating coverage on the company with an overweight rating.

This rise in PRCT stock coincides with gains in broader U.S. markets .

KeyBanc analyst Matthew Mishan in research note dated July 14 gave PRCT stock a price target of $47, which represents a 52.1% upside to PRCT's last closing price of $30.90.

The Redwood City, Calif.-based surgical robotics company's main product is the AquaBeam robotic system, which is a minimally invasive, image-guided, heat-free robotic therapy for the treatment of lower urinary tract systems due to benign prostatic hyperplasia (BPH), or the enlargement of the prostate gland.

"While we still expect diverse solutions for the treatment of BPH, we see multiple paths for AquaBeam to expand its direct (total addressable market)," said Mishan.

"The U.S. penetration of respective surgical procedures to treat BPH is relatively low at <$1B in a broader $20B market, and we believe the (AquaBeam) procedure could capture a larger portion of the patient population," Mishan added.

KeyBanc also introduced sales and EBITDA estimates for the company. The firm sees PRCT achieving sales of $61.4M for 2022 vs. Seeking Alpha's consensus revenue estimate of $61.57M.

KeyBanc's outperform rating on PRCT compares to a Wall Street average rating of strong buy and a SA Authors Rating of hold.

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