Spruce Point Capital says short Procept BioRobotics

Spruce Point Capital Management issued a report entitled, “Pulling Back the Curtain on Procept,” that outlines why the firm believes and estimates that shares of PROCEPT BioRobotics (PRCT) face up to 30% – 60% potential long-term downside to approximately $29 – $54 per share and has market underperformance risk. In its report, the firm raised concerns about the company’s “dramatic” overstatement of its addressable market, and questioned the credibility of Procept’s key business metrics. Spruce Point said: “We believe that Procept’s claim that they will fundamentally change current BPH treatment protocols across the country is unrealistic, since there is no one-size-fits-all BPH treatment. We believe that Procept’s estimate of its addressable market, which is disclosed by the Company to be ~290,000 respective procedures each year in the US, is overly exaggerated. We believe Procept to be an unprofitable, niche, and highly disruptable company whose growth momentum is stalling.”