Zynex Buy Rating Maintained Amid Revenue Challenges and Growth Potential

Analyst Yi Chen of H.C. Wainwright reiterated a Buy rating on Zynex (ZYXI – Research Report), with a price target of $15.00.

Yi Chen has given his Buy rating due to a combination of factors including Zynex’s ongoing efforts to address recent financial setbacks and its potential for future growth. Despite a decline in revenue and a temporary suspension of payments from Tricare, which significantly impacts Zynex’s revenue, the company is taking proactive measures such as reducing staff to save costs and expanding payor coverage to mitigate short-term sales drops. Additionally, the anticipated reinstatement of Tricare payments could improve financial performance in the near future.
Moreover, Zynex’s innovative product development, particularly the NiCO pulse oximeter, presents a promising opportunity. The completion of clinical trials and the potential FDA clearance of this product could allow Zynex to penetrate the lucrative pulse oximetry market with a technologically advanced offering. Furthermore, the company’s solid cash position and positive cash flows suggest it has the necessary capital to sustain operations and support its strategic initiatives. These factors contribute to Yi Chen’s confidence in maintaining a Buy rating for Zynex, despite lowering the price target to $15 per share.