Shares of Nephros, Inc. (NEPH) gained 1.7% on Friday after the company disclosed preliminary results for the third quarter of 2021. Nephros engages in developing and selling liquid purification filters and an on-line mid-dilution hemodialtration system.
The company expects to report net revenue of about $2.6 million in the third quarter, up 24% from the same quarter last year. The consensus estimate stands at $2.9 million.
The company said that it generated the highest revenue in the nine months ended September 2021 of about $7.6 million, up 22% from the year-ago period. (See Nephros stock charts on TipRanks)
The President and CEO of Nephros, Andy Astor, said, “We believe revenue growth will continue to accelerate, returning to pre-pandemic levels in the coming quarters. Our confidence in future growth is further supported by additional, promising results from our Pathogen Detection Systems (PDS) business segment which continued to gain traction this quarter, generating nearly $60,000 in net revenue.”
Following the news, Maxim Group analyst Anthony Vendetti maintained a Buy rating on Nephros with a price target of $16 (100% upside potential from current level).
Vendetti noted, “Although Nephros reported slightly lower-than-expected 3Q21 preliminary revenue, we remain bullish on the company’s portfolio of water purification filters, pathogen detection systems, and second-generation hemodiafiltration device (HDF).”
“Continued revenue generation from the pathogen detection segment is, in our opinion, a positive sign, and we believe the potential launch of NEPH’s second-generation HDF device, currently under FDA 510(k) review, bodes well for the company’s long-term prospects,” the analyst added.
Consensus among analysts is a Moderate Buy based on 2 Buys. The average Nephros price target of $14.25 implies upside potential of 78.1% to current levels.
TipRanks’ Stock Investors tool shows that investors currently have a Very Negative stance on Nephros, with 18.4% of investors on TipRanks decreasing their exposure to NEPH stock over the past 30 days.