Goldman Sachs Upgrades Beta Bionics, Inc. (BBNX) to Buy

Goldman Sachs analyst David Roman upgraded Beta Bionics, Inc. (NASDAQ: BBNX) from Neutral to Buy with a price target of $26.00 (from $18.00).

The analyst comments: "We upgrade shares of Beta Bionics (BBNX) from Neutral to Buy and raise our price target to $26, representing 31% upside potential. Following a deep dive into our diabetes technology market model with specific focus on the insulin pump segment, we concluded that growth in this category hinges on three key drivers: (1) renewal market share amongst the Type 1s with a high level of churn (patients coming to end-of-warranty within the durable pump segment of the market); (2) serving the large and growing Type 2 insulin intensive users (multiple daily injectors, or MDIs); and (3) competitive positioning in the patch segment of the market (for Type 1s).

On the basis of higher sales estimates and a view that further capital is no longer needed to reach profitability, we are increasing our target multiple from 5.5x GSe Q5-Q8 sales to 6.5x GSe Q5-Q8 sales. This multiple sits at a premium to SMID cap growth MedTech comps that currently trade at 4.5x 2025 for three-year forward top-line growth of ~17% vs. our forecast for Beta Bionics of ~41%. As such, our 12-month price target, which is based on 6.5x GSe Q5-Q8 sales, rises from $18 to $26. Our valuation framework and financial projections do not take into consideration the company's ongoing development of bi-hormonal drug and device delivery technology."

For an analyst ratings summary and ratings history on Beta Bionics, Inc. click here. For more ratings news on Beta Bionics, Inc. click here.

Shares of Beta Bionics, Inc. closed at $19.87 yesterday.

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