H.C. Wainwright has revised its target price for EDAP TMS (EDAP, Financial), cutting it from $19 to $14 while maintaining a Buy rating on the stock. This adjustment follows the company's first-quarter report, where it was noted that management is shifting focus away from noncore business areas. Investors remain encouraged as EDAP continues to streamline its operations.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Edap TMS SA (EDAP, Financial) is $1.63 with a high estimate of $1.75 and a low estimate of $1.50. The average target implies an downside of 7.67% from the current price of $1.76. More detailed estimate data can be found on the Edap TMS SA (EDAP) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, Edap TMS SA's (EDAP, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Edap TMS SA (EDAP, Financial) in one year is $7.80, suggesting a upside of 343.18% from the current price of $1.76. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Edap TMS SA (EDAP) Summary page.
EDAP Key Business Developments
Release Date: May 15, 2025
- HIFU Revenue: €6.2 million, up 6.8% from €5.8 million in Q1 2024.
- Total Worldwide Revenue: €13.6 million, a decrease of 9.1% from €14.9 million in Q1 2024.
- Gross Profit: €5.7 million, down from €6.4 million in Q1 2024.
- Gross Profit Margin: 42%, compared to 42.8% in Q1 2024.
- Operating Expenses: €11.7 million, up from €11.2 million in Q1 2024.
- Operating Loss: €6 million, compared to €4.8 million in Q1 2024.
- Net Loss: €7.1 million or €0.19 per diluted share, compared to €4.5 million or €0.12 per diluted share in Q1 2024.
- Cash and Cash Equivalents: €22.8 million at the end of Q1 2025, down from €29.8 million at the end of Q4 2024.
- Inventory: €18 million at the end of Q1 2025, down from €18.5 million at the end of Q4 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Edap TMS SA (EDAP, Financial) placed a record nine Focal One systems in the first quarter of 2025, marking the highest number of placements for any first quarter period in the company's history.
- Focal One received CE mark approval for the treatment of posterior deep infiltrating endometriosis, expanding its potential market in Europe.
- The company launched the new Focal One I robotic HIFU system at the 2025 AUA meeting, showcasing advancements in their technology.
- Positive results from the FARP randomized controlled trial were presented, supporting the efficacy of robotic focal therapy for prostate cancer.
- The world's first remote transatlantic Focal One robotic HIFU procedure was conducted, highlighting the system's innovative capabilities and potential for remote operations.
Negative Points
- Total worldwide revenue decreased by 9.1% compared to the same period in 2024, primarily due to declines in non-core ESWL and distribution divisions.
- Operating loss increased to €6 million in the first quarter of 2025, compared to €4.8 million in the first quarter of 2024.
- Net loss for the first quarter of 2025 was €7.1 million, a significant increase from the €4.5 million net loss in the year-ago period.
- The company is experiencing longer and more challenging review and procedure approvals, particularly for patients enrolled in Medicare Advantage plans.
- A 10% tariff impact is forecasted for goods transferred from France to the US in the second quarter, potentially affecting costs and profitability.
