Strong Finish to FY26 and Charging Up for Sustained Momentum in FY27; Raising PT from $30 to $32

研报英文原文证据摘录

Strong Finish to FY26 and Charging Up for Sustained Momentum in FY27; Raising PT from $30 to $32

Investment Thesis

Our KMTS rating is Buy. The company has entered the wearable cardioverter defibrillator (WCD) market, previously a monopoly,

with an improved product offering and has made important investments in its manufacturing and salesforce capabilities to scale up

the business. While Kestra is still early in the commercial ramp with the ASSURE WCD, it is steadily gaining market share, has broadMEDICAL payor coverage, is improving its revenue cycle management, and is driving growth in prescription volumes. We see opportunities

to gain further market share from the incumbent player, increase penetration into the suitable patient population, and expand

into new geographies. The company is improving its financial profile and is targeting 70%+ gross margin over time.

Upcoming Catalysts Price Performance

■ Quarterly updates on commercial ramp, revenue, margins, and other operating $30

metrics $28TECHNOLOGY ■ Throughout 2026: Competitive launch from Element Science (Private) $26

■ Throughout: Updates on plans to pursue CE Mark and expansion into international $24

markets like Western Europe $22

$20EQUITY $18 Base Case Assumptions: $32 Price Target

$16

■ 40%+ sales growth over next couple of years $14

■ Annual increases in sales territories and steady growth in prescription volumes Aug-25 Sep-25 Oct-25 Nov-25 Dec-25 Jan-26 Feb-26 Mar-26 Apr-26 May-26 Jun-26 Jul-26 ■ Consistent improvement in revenue cycle management and conversion rate

KMTS

■ Steady improvement in gross margin S&P 500 (rebased)

Source: FactSetRESEARCH

Upside Scenario Company Description

■ Faster than ~40% sales growth over next couple of years Kestra Medical Technologies is a