Positive Developments and Strategic Advancements Drive Buy Rating for Beta Bionics, Inc.

Beta Bionics, Inc. (BBNX – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Travis Steed from Bank of America Securities maintained a Buy rating on the stock and has a $25.00 price target.

Travis Steed’s rating is based on several positive developments at Beta Bionics, Inc. The company has shown strong performance in the first quarter, with a notable increase in pharmacy volume leading to a raised full-year guidance for new patient starts. This increase is significant as the pharmacy reimbursement model can generate three times the revenue per patient over four years compared to traditional models. Additionally, the adoption of the iLet device is gaining momentum among physicians, supported by both clinical trial data and real-world patient experiences.
Furthermore, Beta Bionics has improved its gross margin guidance, anticipating benefits from reduced bill of materials costs and leveraging a fixed manufacturing structure. The company’s strategic pharmacy benefit manager contracts enhance coverage and visibility, facilitating easier access to the iLet device for patients. These factors, combined with the expectation of increased revenue and patient starts, contribute to Steed’s confidence in the stock’s potential upside, justifying the Buy rating.

In another report released on May 7, Piper Sandler also maintained a Buy rating on the stock with a $26.00 price target.

Based on the recent corporate insider activity of 14 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of BBNX in relation to earlier this year.