Beta Bionics stock initiated with Buy rating at Truist Securities

Truist Securities initiated coverage on Beta Bionics, Inc. (NASDAQ:BBNX) with a Buy rating and a price target of $26.00 on Monday. The target aligns with the broader analyst consensus range of $15-$28, according to InvestingPro data, for this $828 million market cap company.

The research firm cited the company’s iLet infusion pump, which launched in mid-2023, as a key growth driver expected to support approximately 37% revenue compound annual growth rate from 2024 to 2028, with gradually narrowing profit losses. The company maintains a strong gross margin of 54% and has received a GOOD overall financial health score from InvestingPro, which offers 8 additional key insights about BBNX’s potential.

Truist Securities projects Beta Bionics will capture at least 5-6% of the U.S. pump market share by 2028, compared to less than 1% in 2024, within the double-digit growing and still underpenetrated U.S. Type 1 and Type 2 insulin infusion therapy pump market.

The firm highlighted management’s strategic focus on driving pharmacy channel adoption as a significant factor in its positive outlook for the medical device company.

Truist Securities also noted that Beta Bionics’ research and development efforts on a patch pump could accelerate pharmacy benefit pathway penetration in 2027 and beyond, potentially driving estimate upside in future years.

In other recent news, Beta Bionics Inc . reported its Q1 2025 earnings, revealing a significant earnings shortfall with an earnings per share (EPS) of -$0.93, missing the forecast of -$0.42. Despite this, the company saw a 36% year-over-year increase in revenue, reaching $17.6 million, and has raised its full-year revenue guidance to $82-87 million. The company continues to expand its sales territories and product offerings, including the introduction of the Libre three plus integration and the Bionic Circle remote monitoring app. On the analyst front, Goldman Sachs initiated coverage on Beta Bionics with a Neutral rating and a 12-month price target of $16.00, citing the potential of the company’s proprietary technology, iLet, and its anticipated market penetration. The firm noted that while the company’s growth potential is adequately reflected in consensus estimates, additional capital may be needed for Beta Bionics to achieve cash flow breakeven. The company’s gross margin declined to 50.9% from 55.7% in Q1 2024, reflecting increased costs or pricing pressures. Beta Bionics is focusing on expanding its pharmacy channel and increasing new patient starts, particularly in the type two diabetes market.

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