H.C. Wainwright Reiterates Buy Rating on Zynex Inc. (ZYXI) Following Kestrel Labs Deal

H.C. Wainwright analyst Yi Chen reiterated a Buy rating and $22.00 price target on Zynex Inc. (NASDAQ: ZYXI) after the company announced last week that it Kestrel Labs Inc. for $31 million. Kestrel Labs develops laser-based noninvasive patient monitoring technology, and its product candidates include NiCO CO-Oximeter, a multi-parameter pulse oximeter, and HemeOx, a total hemoglobin oximeter.

The analyst commented, "Of note, NiCO uses laser-based photoplethysmography patient monitoring technology to identify, measure and monitor four different types of hemoglobin, including O2Hb (oxygenated hemoglobin), RHb (reduced hemoglobin), COHb (carboxyhemoglobin), and metHb (methemoglobin). Notably, O2Hb can be measured regardless of skin pigmentation or COHb level with high accuracy. HemeOx measures total hemoglobin (tHb) and oxygen saturation. Importantly, both devices are noninvasive compared to marketed oximeters that require invasive arterial blood sampling. In addition, NiCO could be the first device on the market that has the ability to distinguish between hemoglobin bound to carbon monoxide (COHb) rather than to oxygen, which could lead to better quality of care. In our view, the two noninvasive oximeters strengthen the company’s patient monitoring portfolio, which includes the fluid monitoring system CM-1500 and CM-1600. We believe the company could realize significant synergies between the fluid monitoring system and noninvasive oximeters in terms of technology, business model and go-to-market strategy. The acquisition enables Zynex to target the $1B U.S. pulse oximeter market. Management expects to submit the two devices to the FDA for 510(k) clearance in 2023 with potential market entry in 2024. We reiterate our Buy rating and $22 price target."

For an analyst ratings summary and ratings history on Zynex Inc. click here. For more ratings news on Zynex Inc. click here.

Shares of Zynex Inc. closed at $10.51 yesterday.

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