Despite Competition This Analyst Finds BrainsWay Attractive

  • Yesterday BrainsWay Ltd BWAY reported Q2 sales of $8.0 million, up 14% Y/Y, missing the consensus of $8.47 million, amid a slowdown in capital equipment orders, particularly in the U.S.
  • Raymond James says that despite improved awareness and access, concerns about a potential economic slowdown are impacting capital purchases, specifically with new customers.
  • The analyst keeps Outperform rating with a price target of $8, down from $10. 
  • Rival Neuronetics Inc STIM gained market share in 2Q, but the higher upfront sticker price of BWAY has likely lengthened the sales cycles. 
  • The analyst notes that the competitive environment remains fierce. But the market opportunity remains large enough for multiple players, and BWAY’s Deep Transcranial magnetic stimulation (TMS) value proposition, with scalable optionality, remains attractive.
  • Raymond James estimates that BWAY sold ~10 box outside U.S., two better than estimated, and a signal that recent personnel shifts are impacting. 
  • BWAY also recently received favorable coverage from the Israeli Ministry of Health for D-TMS treatment of depression.
  • Price Action: BWAY shares are down 3.79% at $5.46 during the market session on the last check Thursday.
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