Stock of the day: Nanosonics surges with predicted 14% revenue growth
Nanosonics, a medical devices company, expects a 14% revenue boost due to strong growth in capital and services streams. Despite challenges, analysts upgrade their rating from 'sell' to 'hold.
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Stock of the day: Nanosonics (ASX: NAN)
Market performance and growth outlook
Today, Nanosonics soared in the market after announcing it expects revenue to increase by 14% in the second half of the year due to stronger growth in both capital and services revenue. The company projects second-half revenue of $90 million, with gross margins at the higher end of the 76-78% forecast range. CEO Michael Kavanagh added that growth opportunities for the company's trophon disinfection device remain significant for the second half of 2024. Additionally, many healthcare stocks have been performing well today.
Investment implications
Despite the challenges of hospital budget constraints and pending Food and Drug Administration (FDA) approvals, Nanosonics has shown resilience and potential for growth. The company's strategy of integrating disinfectants with its devices ensures continuous revenue, even as it navigates the approval process for new products like the Chorus device. Analysts have shifted their rating from 'sell' to 'hold,' reflecting cautious optimism about Nanosonics' future prospects.
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