Piper Sandler bullish on ViewRay following two large MRIdian agreements

Piper Sandler analyst Jason Bednar notes that ViewRay announced it has entered into a master purchase agreement with University Hospitals Seidman Cancer Center in Cleveland for the purchase of up to 4 MRIdian systems. Additionally, ViewRay announced Chindex, the company’s China distribution partner, has ordered 10 MRIdians and represents the company’s first orders in China since receiving regulatory approval in September. In speaking with management, his understanding is the first UH order was officially booked in Q4, whereas the full Chindex agreement will be recognized in Q1. With the formal orders announced today, Bednar anticipates backlog could rise above $425M by the end of Q1. The analyst has an Overweight rating on the shares with a price target of $6.50.