ProSomnus price target lowered to 40c from $1 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on ProSomnus to 40c from $1 and keeps a Hold rating on the shares. The firm acknowledges that sales strength continued into Q4, driven by increased physician adoption and marketing initiatives taking effect. However, the company’s current capital position overshadows any of the positives coming from the accelerating sales momentum. Cash burn was about $5M in Q4, leaving the company with approximately $7.1M in cash-on-hand as of December-end, or about $2M currently. In other words, the company needs a cash infusion immediately, says Craig-Hallum.