iCAD price target lowered to $3 from $4 at BTIG

BTIG lowered the firm’s price target on iCAD to $3 from $4 but keeps a Buy rating on the shares. The company’s pledge to reduce spend and reach profitability is encouraging, but BTIG is skeptical that revenue can grow meaningfully near-term given the deep cuts to the workforce, exploration of strategic options for the Xoft Therapy business, and continued shift toward a subscription sales model, the analyst tells investors in a research note. Despite workforce reductions, ICAD has also not reduced sales personnel headcount in the Detection business, and the updated compensation incentives as well as new selling metrics being put in place by the new head of U.S. Commercial Sales in AI can help preserve the subscription sales strategy, BTIG added.