H.C. Wainwright Reiterates Buy Rating on Brainsway (BWAY)

H.C. Wainwright analyst Raghuram Selvaraju reiterated a Buy rating and $16.00 price target on Brainsway (NASDAQ: BWAY).

The analyst commented: "Last week, BrainsWay announced that it has entered into a strategic equity financing agreement with Stella MSO, LLC, a management services organization servicing more than 20 mental health clinics across the U.S. and Israel that have treated over 30,000 patients to date. This investment is only the first of several minority-stake investments that BrainsWay is planning to make in high-performing providers across the U.S. These equity investments are part of a broader strategic initiative to accelerate access to and awareness of innovative mental health treatments such as Deep TMS Therapy in the market by supporting the interventional psychiatry space. The minority investment strategy allows BrainsWay to continue its core focus on scientific and clinical advancement of its technology and delivering best-in-class support to all of its customers. Under the terms of the definitive agreement, BrainsWay will invest $5M in Stella, and will receive a minority stake in the form of a preferred, annually compounding security. The agreement also provides for a redemption mechanism relating to the shares. We anticipate that BrainsWay could make two or three more of these investments during the remainder of 2025, funded with cash on hand. As a reminder, the company continues to expect sustained profitability and positive cash flow, and has maintained its guidance for operating income of 3-4% and adjusted EBITDA of 11-12% for 2025. In 1Q25 alone, BrainsWay shipped a total of 81 Deep TMS systems, representing a 42% increase from the year-ago period and constituting a record total. We reiterate our Buy rating and 12-month price target of $16."

For an analyst ratings summary and ratings history on Brainsway click here. For more ratings news on Brainsway click here.

Shares of Brainsway closed at $10.45 yesterday.

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