In a report released today, Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Rockwell Med (RMTI – Research Report), with a price target of $3.00.
Ram Selvaraju has given his Buy rating due to a combination of factors that highlight Rockwell Medical’s potential for growth despite current challenges. The company is experiencing a decline in revenue, primarily due to the transition of its largest customer to another supplier, which is expected to result in a significant revenue loss by mid-2025. However, Rockwell Medical is actively addressing this issue by implementing expense reductions and engaging in discussions with the customer for potential contract extensions or future commitments.
Despite the revenue challenges, Rockwell Medical is pursuing multiple growth opportunities, focusing on expanding its hemodialysis concentrates business. The company aims to attract new customers within its distribution footprint, targeting an estimated 14.5 million gallons of potential business. Additionally, Rockwell Medical is expanding geographically in the western United States and has recently added a single-use bicarbonate cartridge to its product portfolio, tapping into a $100 million market opportunity. These strategic initiatives, along with the company’s strong distribution capabilities and customer service, support Selvaraju’s Buy rating for Rockwell Medical.
Selvaraju covers the Healthcare sector, focusing on stocks such as Axsome Therapeutics, Vanda, and Emergent Biosolutions. According to TipRanks, Selvaraju has an average return of 5.0% and a 39.07% success rate on recommended stocks.
In another report released on March 21, Maxim Group also maintained a Buy rating on the stock with a $5.00 price target.