BTIG raised its price target for ViewRay (NASDAQ:VRAY) to $14 from $10 after the stock pulled back from a recent climb to nearly $13. It closed at $11.05 on Aug. 3.
“We felt the stock had overrun a bit to near $13 and [we] would have moved [the rating] to neutral but with shares pulling back now still see them compelling,” writes analyst Dr. Sean Lavin.
He said the stock was probably pressured by gross margins of about 0% in the second quarter because of one-time issues and expected cash use for the year being increased $10-million.
“We continue to expect ViewRay to require additional funding by the first half of 2019,” he added. “We like the new management team’s track record both as operators and sellers of companies and expect an improvement in commercial execution.”
ViewRay manufactures and markets MRIdian, the world’s first MRI-guided radiation therapy system that can image and treat cancer patients simultaneously.
