H.C. Wainwright reiterates FocalTherics stock rating at buy

H.C. Wainwright has reaffirmed its Buy rating on FocalTherics (NASDAQ:FOCL) and kept its price target at $10.00. Shares are presently priced at $4.18, implying a potential upside of roughly 139%. However, InvestingPro analysis indicates the stock may be overvalued compared to its Fair Value estimate. In Q2 2026, FocalTherics recorded 13 Focal One capital sales, an increase from the 11 sales in Q1 2026.

The company has shown robust revenue growth of 61% over the past year, but analysts predict a 26% decline in sales this year. Investors can gain further insights by purchasing FocalTherics' Pro Research Report, one of 1,400+ on InvestingPro. Q2 saw eight U.S. sales and five international sales, marking the second highest capital sales quarter to date.

Two of the U.S. sales were lease conversions from the University of Michigan and Vanderbilt University Medical Center, aligning with management's strategy to favor cash sales over lease agreements. The installed base has grown to 184 systems, with 96 in the U.S. and 88 internationally. Management has expressed confidence in a pipeline of 300 deals, with U.S. units expected to dominate the mix for the rest of 2026.

EDAP TMS S.A. recently closed a sale of additional American Depositary Shares (ADSs), expecting to receive around $5.6 million in net proceeds. This follows an initial sale of 8,425,000 ADSs at $4.75 per share, with underwriters purchasing an additional 1,263,750 ADSs. FocalTherics reported a 39% year-over-year increase in HIFU revenue to $13.2 million in Q2 2026.

Capital system sales jumped 44% to 13 units, marking the company's best second quarter ever. Gross margin improved to 55.6% from 51.1% year-over-year, indicating better cost management and pricing strategies. The company has maintained its full-year 2026 revenue guidance of $50 million to $54 million for its core HIFU business.