Is PROCEPT BioRobotics the Next Big Thing in Surgical Robotics?

Core Viewpoint - PROCEPT BioRobotics is positioned as a significant player in the surgical robotics market, particularly with its AquaBeam Robotic System for treating benign prostatic hyperplasia (BPH), and has shown strong revenue growth and stock performance since its public listing [1][6][7]. Company Overview - PROCEPT BioRobotics specializes in surgical robotics, focusing on the AquaBeam Robotic System designed for BPH treatment [1][4]. - The company went public during the SPAC boom in 2021 and has maintained a stock price near its historical highs, unlike many other SPACs [1]. Market Context - BPH is a prevalent condition among aging men, affecting nearly 50% of men aged 50 to 61, and up to 90% of men over 80 years old, with an estimated 14 million men in the U.S. and 30 million globally suffering from it [2]. - The U.S. market for BPH treatment exceeds $20 billion, indicating a substantial opportunity for growth [2]. Product Details - The AquaBeam Robotic System utilizes Aquablation therapy, a minimally invasive procedure that employs a high-velocity, heat-free water jet to remove excess prostate tissue, providing real-time imaging for precise treatment [3][4]. - The system is sold for approximately $350,000 per unit, with recurring revenue generated from consumables and maintenance services [4]. Financial Performance - In Q3 2024, PROCEPT reported a revenue increase of 61.2% year-over-year to $53.35 million, surpassing consensus estimates [6]. - U.S. handpiece and consumables revenue rose by 101% year-over-year to $27.3 million, with 47 robotic systems sold during the quarter [6]. - The company raised its full-year 2024 revenue guidance to $217 million, reflecting strong operational performance and market penetration [7]. Analyst Ratings and Stock Performance - PROCEPT BioRobotics has a consensus "Buy" rating among analysts, with a 12-month price target of $66.00, indicating a potential upside of 2.17% [6][7]. - The stock has been trading within a rectangle channel pattern, with resistance at $68.94 and support at $53.95 [5].