RE:Research Capital: Take a pass on Profound Medical "In spite of the potential rebound and the prospect of third quarter results coming in November, Uddin believes Profound is still a wait-and-see prospect. With the update, Uddin has maintained his target of C$21.50, which at the time of publication represented a projected one-year return of 19 per cent.
“We are lowering our gross margin assumption for Q3 and increasing R&D expense estimates for 2021,” he said. “We are maintaining our HOLD rating as we await better visibility on U.S. sales ramp-up of TULSA-PRO.”
Uddin is expecting the P/Sales to drop as sales ramp up & does not see positive earnings until 2025. Everything does seem to take longer than you expect, so this conservative take may be fair.
At just over $18/share the $21.50 target provides a 19% return. Worth HOLDing out for no doubt. PRN has had a habit of spiking higher on any good news, often to levels well above $21.50. The news is usually good. The exception is the loss that is coming down very slowly with each succeeding quarter.