RBC Capital Markets thinks Zynex stock could grow if the company taps into the patient monitoring market. The firm initiated coverage of the electrotherapy stock with an outperform rating and a $13 per share price target in a Sunday note. RBC’s forecast implies more than 63% upside from Friday’s $7.97 close. Zynex stock has slipped nearly 43% from the start of the year. The company produces and manufactures electrotherapy medical equipment for patients with disabilities seeking rehabilitation. Zynex currently has a market capitalization of about $286 million. ZYXI YTD mountain Zynex stock. Analyst Shagun Singh says while the company is already a player in the electrotherapy market in the U.S., the Zynex could potentially capitalize on the patient monitoring worth nearly $4 billion. “ZYXI has a favorable financial profile with 20-25% revenue growth, near-80% [gross margins], and improving profitability to mid-to-upper 20s over time,” Singh said. “We believe ZYXI management’s execution and evidence-building will be key for the future success of the company.” The company currently has products like the CM-1600 fluid monitoring system, the analyst added which is expected to be launched before the end of the year, to tap into the patient monitoring market. The analyst added that the company could post sales of $194 million in 2023, which could grow to $521 million by 2028, equating to a 22% compounded annual growth rate. — CNBC’s Michael Bloom contributed to this report.
