Lake Street analyst Frank Takkinen has reiterated their bullish stance on KRMD stock, giving a Buy rating today.
Frank Takkinen has given his Buy rating due to a combination of factors that highlight the potential for significant growth and value in REPRO-MED Systems. The company has demonstrated strong fundamentals with more than 75% of its revenue being recurring, and it is experiencing core business growth of 10-15% along with international growth of around 30%. These robust fundamentals are complemented by several growth acceleration opportunities, including continued execution outside the United States, the introduction of novel therapies, and new product launches, all of which are expected to drive durable growth of over 20% in the coming years.
Additionally, the company has shown exceptional cash management, generating $0.8 million in cash in the fourth quarter of 2024, and it is on track to meet or exceed its revenue guidance for 2025. This financial strength, combined with a strategic focus on expanding its market share and enhancing its product offerings, supports a price target of $6, based on a 7.3x EV/Sales multiple for 2025. The company’s infrastructure development towards becoming a $100 million entity further underscores its potential, making it an attractive investment opportunity at the current valuation.
Takkinen covers the Healthcare sector, focusing on stocks such as REPRO-MED Systems, NeuroPace, and Inotiv. According to TipRanks, Takkinen has an average return of 4.2% and a 37.37% success rate on recommended stocks.
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