UPDATE: H.C. Wainwright Upgrades Zynex Inc. (ZYXI) to Buy
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(updated to add analyst comments)
H.C. Wainwright analyst Yi Chen upgraded Zynex Inc. (NASDAQ: ZYXI) from Neutral to Buy with a price target of $25.00.
The analyst commented, "Last week, Zynex announced that it had reached the goal of 400 sales reps ahead of the original target date of September 30, 2020. Management noted that qualified candidates are available in the market due to increased unemployment rates as a result of COVID-19. The company plans to have new sales reps cover U.S. territories that have not been covered previously, and aims to continue to increase the total number of sales reps to 500 by the end of 2020 and over 600 by the end of 2021. In our view, the strengthened sales team should drive top-line growth amid the pandemic. As reported earlier this month, aggregate orders for the NexWave device grew 83% YoY in July and August combined, following 37% order growth in 2Q20. The robust order growth was partly due to business reopening in June, according to management, which improved sales reps’ productivity closer to pre-COVID-19 levels. It is evidently also the result of an expanding sales team covering more territories, in our view. Management has reiterated their 2020 guidance of $80-85M total net revenue and $15-18M adjusted EBITDA. In view of the attainment of sales force expansion ahead of schedule, the robust order growth in the past two months, and the fact that the stock is trading well below our $25 target, we are upgrading our ZYXI rating to Buy from Neutral."
Shares of Zynex Inc. closed at $15.49 yesterday.
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