Goldman Sachs sets Beta Bionics stock at Neutral with $16 target
Investing.com
Published May 30, 2025 03:17AM ET
On Friday, Goldman Sachs initiated coverage on Beta Bionics, Inc. (NASDAQ:BBNX) with a Neutral rating, accompanied by a 12-month price target of $16.00. The research firm's assessment hinges on the potential of Beta Bionics' proprietary technology, iLet, which is designed to cater specifically to a segment of the Type 1 diabetes market. According to InvestingPro data, analyst targets for the stock range from $15 to $30, with the company currently trading at levels suggesting it may be overvalued based on InvestingPro's Fair Value analysis.
The Goldman Sachs analyst highlighted the early adoption stage of iLet, suggesting that the near-term growth for Beta Bionics could surpass that of its Diabetes sector peers and small to mid-cap (SMID) medical technology companies. This projection is based on the product's fit for its target market and the anticipated acceleration of its market penetration.
The analyst's statement also indicated that while the consensus estimates appear to adequately reflect the company's growth potential over the coming years, the current valuation also accounts for the anticipated need to secure additional capital in the future. This capital would be necessary for Beta Bionics to reach a point of cash flow breakeven.
Goldman Sachs' price target implies a measured view of the stock, taking into account the balance between the innovative nature of iLet and the financial journey Beta Bionics may face. The $16.00 price target is set with a forward-looking perspective that considers both the company's growth trajectory and its funding requirements.
The initiation of coverage by Goldman Sachs provides investors with a comprehensive outlook on Beta Bionics, factoring in the company's market position, technological advancements, and financial forecasts. As the company progresses with the adoption of iLet, the market will continue to monitor its performance in relation to the expectations set by analysts.
In other recent news, Beta Bionics Inc . reported a significant earnings miss for Q1 2025, with an earnings per share (EPS) of -$0.93, falling short of the analyst forecast of -$0.42. Despite this, the company saw a 36% increase in net sales year-over-year, reaching $17.6 million. The company has raised its full-year revenue guidance to $82-87 million, reflecting confidence in its growth strategy. Beta Bionics is focused on expanding its pharmacy channel, which has shown strong adoption rates, and aims to increase new patient starts, particularly in the type two diabetes market. Analyst firms such as Piper Sandler and Leerink Partners have shown interest in the company's pharmacy dynamics and sales force expansion, noting the potential for increased market penetration. Additionally, the company is advancing its innovation pipeline, including the development of a patch pump and bihormonal pump glucagon candidate. Beta Bionics remains committed to building a differentiated business model, emphasizing its unique position in the diabetes management technology landscape.
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Written By: Investing.com
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