Cutera (CUTR) PT Lowered to $6 at Stifel, 'improvements are needed for Cutera to turn the corner'

Stifel analyst Jonathan Block lowered the price target on Cutera (NASDAQ: CUTR) to $6.00 (from $10.00) while maintaining a Buy rating.

The analyst commented: "Cutera’s 4Q23 revenue of $49.5MM was in line with its preannouncement and ahead of our previous $42.3MME. The company ended 2023 with ~$144MM in cash, and encouragingly, expects FY24 burn to decline roughly -50% y/y with a material moderation in 2H24. However, the big 4Q23 surprise was non-GAAP GM of 20%, which was impacted by an $8MM+ inventory-obsolescence charge. Normalized GM of ~37% still compressed significantly y/y. Looking forward, we believe 2H24 will be a critical juncture for the Cutera story. At that time, we will need to see the U.S. AviClear re-launch gaining traction and International AviClear showing increasing momentum. The base business will need to improve as comps ease, new reps are added and the product portfolio is re-invigorated. Finally, stronger GM and inventory management can moderate the cash burn. In our opinion, these improvements are needed for Cutera to turn the corner and achieve cash-flow breakeven in late-2025/2026."

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