Cantor Fitzgerald Defends Nano-X Imaging (NNOX) Following Short Report
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Cantor Fitzgerald analyst Steven Halper reiterated an Overweight rating and $70.00 price target on Nano-X Imaging (NASDAQ: NNOX), defending the stock following weakness due to a new short-seller report.
The analyst commented, "We reiterate our Overweight rating on the shares and our price target remains at $70. This morning, the shares traded lower, due, presumably, to a report that questions the legitimacy of the company's growth potential. We will address four areas, including data, R&D spend, FDA and customer orders. On published data, we note that the prototype device has been in place at Hadassah hospital in Jerusalem, a large and well-known hospital in Israel. Data used for the FDA was gathered at this site. With respect to FDA, it is certainly customary for device companies to use a 510(k) approval process, which compares the device to predicate technology. The regulatory threshold is much lower when you are proving comparability. On R&D spend, NNOX acquired the technology from Sony (SNE - NC), which, according to its CEO, spent $1 billion on the technology before the acquisition. Finally, with respect to customer orders, we are very comfortable with the clients that were disclosed in the company's filings (representing about 4,500 units). We note the company recently signed a new contract for another 630 units and has good visibility on another 5,500 units. We continue to expect the company to install 15,000 units by 2024 and for peak revenue to reach $900 million by 2026."
Shares of Nano-X Imaging closed at $49.21 yesterday.
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