AGP ups Sensus Healthcare PT to $7.50 from $2.95

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Alliance Global Partners raised its price target for Sensus Healthcare (NASDAQ:SRTS) to $7.50 from $2.95, citing fourth quarter results that were well ahead of consensus estimates. The stock closed at $4.94 on March 1.

“The revenue upside drove substantial gross margin outperformance as Sensus reported gross margin of 63.4%, 460 basis points ahead of our expectations,” writes analyst Ben Haynor. 

Mr. Haynor said Sensus shipped 18 systems during the quarter, including three to China. Eight of the systems were the flagship, SRT-100 Vision systems. However, revenue was not recognized on two, one of which was a SRT-100 Vision system and will be recognized in the current quarter, he added. 

SRT-100 low dose superficial radiation therapy has been cleared by the FDA for the treatment of non-melanoma skin cancer and keloids. 

Mr. Haynor said Holy Name Hospital in Teaneck, NJ has acquired an SRT-100 system to treat pneumonia in COVID-19 patients, which “could be a substantial opportunity.” 

A number of other “brand name” hospitals have attempted delivering low dose radiation to COVID-19 patients utilizing linear accelerators in their cancer centers to deliver the radiotherapy, he added. “Sensus’ SRT-100, with its ability to deliver radiation at the patient’s bedside, appears to be a viable option for these patients and hospitals.”

Sensus also will launch four new aesthetic lasers in April and “we think this will present a stellar opportunity combined with their Sensus Laser Aesthetic Solutions business,” Mr. Haynor said. “We think an ‘on-demand’ model where lasers can be rented for multiple lengths of time will be appealing to many dermatology practices.”