Profound Medical initiated with a Buy at Lake Street

Lake Street analyst Ben Haynor initiated coverage of Profound Medical with a Buy rating and $16.50 price target. CMS published the proposed facility and physician fee schedules set to take effect January 1, 2025 earlier this month and the proposed amounts for the three CPT Category 1 codes associated with Profound’s TULSA procedure “appear as good or better than existing modalities utilized to treat prostate cancer,” the analyst tells investors. Given the drawbacks of current PCa treatments, CMS reimbursement “mere months away,” and “unenviable competitor positions,” the firm anticipates that TULSA-PRO will “emerge a true challenger to the PCa standard of care throne,” the analyst added.