BofA downgrades Pulmonx to Underperform on limited upside potential

BofA analyst Travis Steed downgraded Pulmonx to Underperform from Neutral with an unchanged price target of $8. The analyst does not see the company’s new outlook as overly conservative and says upside is likely limited at least for the near term. Pulmonx shares currently trade above the price target, says Steed, who awaits signs of market acceleration driving sustainably higher revenue growth in a non-COVID environment to get more constructive on the name. Pulmonx lowered both its 2022 guidance and gave color on 2023 that suggests growth will be closer to 20% versus the Street’s then 37% estimate, Steed tells investors in a research note.