Lifeward Ltd (LFWD) Options

LFWD

Robotics Stock #3: Lifeward

Founded in 2001, Israel-based Lifeward Ltd. (LFWD), formerly known as ReWalk Robotics, is at the forefront of transforming physical rehabilitation and recovery with innovative solutions that enhance care from clinical settings to home and community. Driven by a mission to revolutionize the lives of those with physical limitations or disabilities, Lifeward delivers cutting-edge products like the ReWalk Exoskeleton, AlterG Anti-Gravity systems, ReStore Exo-Suit, and MyoCycle FES Systems.

With a market cap of around $27.4 million, shares of Lifeward have pulled back about 42% on a YTD basis.


www.barchart.com
On Aug. 15, shares of Lifeward shot up more than 30% after the company reported stronger-than-expected Q2 earnings. The company’s revenue of $6.7 million reflected a massive 400% year-over-year jump, narrowly edging past Wall Street’s consensus estimate. Lifeward reported a loss per share of $0.50 in Q2, slightly better than Wall Street’s forecast for a loss per share of $0.53.

Top-line growth was fueled by ReWalk system revenue, primarily driven by the expansion of access through Medicare coverage, marking a significant milestone for the company. CEO Larry Jasinski highlighted the company's progress in establishing a Medicare processing pipeline and achieving successful payments.

As of June 30, the company maintained a healthy $15.1 million unrestricted cash and cash equivalents with zero debt on the books. Delays in Medicare payments impacted operational cash outflows of $5.6 million in Q2, but with $2.6 million in receivables for Medicare claims now starting to come through, the company is poised for improved cash flow in the upcoming quarters.

Encouraged by the strong Q2 performance, management reaffirmed its fiscal 2024 revenue outlook, projecting it to range between $28 million and $32 million. With expanded access to ReWalk systems thanks to newly established Medicare coverage and increasing sales momentum from its revamped commercial team, management anticipates steady quarterly revenue growth for the remainder of fiscal 2024.

LFWD stock has a unanimous “Strong Buy” rating from just two analysts offering recommendations, with the price target of $13 indicating expected upside potential of about 315%.