The biotech and medtech sectors are buzzing with excitement in 2024, thanks to a wave of innovation and promising developments that have captured the attention of investors and industry experts alike. Groundbreaking advancements in diabetes treatments and a surge in mergers and acquisitions are driving a renaissance in the healthcare industry, fueled by cutting-edge technologies and a renewed focus on patient-centric solutions.
While many high-growth stocks in these sectors trade at premium valuations, there are still some hidden gems trading at relatively low prices that could potentially break out. This brings us to three biotech and medical technology firms that have consensus “buy” ratings from analysts, with projected upside of 119% or more to their mean price targets: Mind Medicine Inc. (MNMD), ReWalk Robotics Ltd. (LFWD), and BrainsWay Ltd. (BWAY).
All three stocks are currently trading under $10 per share, but what makes these companies stand out as potential breakout growth plays in their respective fields? Let's explore further.
Mind Medicine: Pioneering Psychedelic-Inspired Medicines
Mind Medicine Inc. (MNMD) is a clinical-stage biopharma company that's making waves with its psychedelic-inspired medicines for brain health disorders. Based in New York, MindMed is at the forefront of using psychedelics in modern medicine, aiming to tackle significant unmet needs in mental health.
MNMD has been on a roll lately, with the stock soaring 148.9% in the past year. Year-to-date, MNMD is up an impressive 140.4%, making it one of the hottest psychedelics stocks around. The company now boasts a market cap of around $619 million.
Financially, MindMed reported a first-quarter 2024 loss of $0.60 per share, better than the expected $0.66 loss. For the second quarter ending June 2024, analysts estimate a loss of $0.30 per share.
On the fundamentals side, MindMed has made big strides, especially with its MM-120 program. The FDA recently granted breakthrough designation to MM-120 for treating Generalized Anxiety Disorder (GAD), a major milestone that could speed up its development and review.
Analysts are overwhelmingly positive about MNMD, with a consensus rating of “Strong Buy” and a mean target of $22.86 - suggesting potential upside of 165.6%. Out of 8 analysts, 7 recommend a ”strong buy," and 1 suggests a “moderate buy.”
ReWalk Robotics: Revolutionizing Mobility with Wearable Exoskeletons
ReWalk Robotics Ltd. (LFWD) is a leading medical device company that designs, develops, and sells wearable robotic exoskeletons for people with lower limb disabilities. Based out of Israel and operating in the U.S., ReWalk Robotics is at the forefront of combining cutting-edge technology with medical solutions.
LFWD has had quite a volatile ride lately, with the stock rallying 9.8% over the past year. Year-to-date, LFWD is down about 15.8%. The company currently has a market cap of around $38.5 million.
ReWalk reported its first-quarter 2024 earnings on May 15. The company posted a loss of $0.73 per share, missing expectations for a $0.70 loss per share. Revenue for the quarter was $5.28 million, up 340% year-over-year, though it missed estimates by 4.81%.
Looking ahead, LFWD is expected to report a loss of $0.53 per share for the second quarter of 2024 on revenue of $6.68 million. For the full fiscal year 2024, the estimate is a loss of $1.75 per share on revenue of $34.57 million, with a narrower loss of $0.30 per share projected for fiscal 2025.
On the business side, ReWalk Robotics has made some key moves. The Board of Directors appointed former NuMotion CEO Mike Swinford as a new member, effective April 18. The company also completed a 1-for-7 reverse split of its shares on March 15, bringing the low-priced stock back into Nasdaq compliance.
With only one analyst in coverage, LFWD has a “strong buy” rating and a price target of $13, representing a potential upside of about 183.8% from Friday's close.
BrainsWay Ltd.: Advancing Non-Invasive Neurostimulation Therapies
BrainsWay Ltd. (BWAY) is a leading medical tech company that develops and markets advanced non-invasive neurostimulation treatments for mental health disorders. Based in Jerusalem, BrainsWay is at the cutting edge of using neuroscience to improve mental healthcare.
BWAY has been on fire lately, with the stock soaring 313.8% in the past year. That's a massive rally - but BWAY has been consolidating those gains in 2024, with a YTD decline of 2.9% on the books. The company currently has a market cap of around $109.2 million.
On the business side, BrainsWay has made big moves in expanding access to its Deep TMS treatment. The company recently announced further expansion of the system in Israel, partly driven by a 45% increase in reimbursement rates.
In the first quarter of 2024, BrainsWay reported impressive financial results, with revenues of $9.1 million notching a significant 37% year-over-year increase. The company achieved positive quarterly net income of $0.1 million for the second consecutive quarter, a remarkable turnaround from the net loss of $2.4 million in Q1 2023. BWAY broke even on a per-share basis, topping estimates.
Looking ahead, BrainsWay reiterated its full-year 2024 revenue guidance of $37 million to $40 million, representing growth of 16% to 26% over the previous year's revenue.
Analysts like the odds for BWAY, with a unanimous rating of "strong buy" from all four in coverage. The mean price target is $11.75, which represents a potential upside of about 86.8% from here.
In a nutshell, the biotech and medtech sectors are buzzing with innovation and growth in 2024. Mind Medicine, ReWalk Robotics, and BrainsWay are three under-$10 stocks with serious breakout potential. If you're hunting for high-growth opportunities, these hidden gems might just be worth a closer look!
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.