Cantor resumes coverage of Nano-X Imaging at OW; PT $21


Cantor Fitzgerald resumed coverage of Nano-X Imaging (NASDAQ:NNOX) with an “overweight” rating and 12-month price target of $21 after attending the company’s ARC Day in Israel. The stock closed at $7.60 on Jan. 4.

The company’s Nanox System is comprised of Nanox.ARC, which uses novel MEMs X-ray source technology, and Nanox.CLOUD, a companion cloud software, integrated with AI solutions and teleradiology services.

Analyst Ross Osborn believes the Nanox.ARC System is a disruptive technology that will be adopted quickly, particularly in developing countries; that the company’s business model of a per-study basis rather than a capital sale is attractive with committed contracts serving partially to de-risk the story; and the current valuation represents an attractive entry point.

“We believe the Nanox System will be attractive to users, given its differentiated cold-cathode technology that allows for a lower cost and smaller system, compared with conventional imaging systems,” Mr. Osborn said.

As a result, the company will be able to deploy systems in historically underserved markets, including rural areas in developed countries and in developing countries where there is a lack of imaging systems available, he added.