Neuronetics (NASDAQ:STIM) shares rose around 2% pre-market today after William Blair analysts upgraded the company to Outperform from Market Perform. The analysts believe that NeuroStar’s recently expanded adolescent indication significantly advances the company’s growth prospects by increasing awareness and improving reimbursement options in the upcoming quarters.
Management’s efforts to enhance the visibility and use of TMS technology among psychiatrists and their patients are expected to facilitate double-digit growth. Additionally, the analysts noted that previous challenges related to Greenbrook are diminishing, and while issues with Change Healthcare present a new challenge, they are expected to be manageable.
The analysts are optimistic about the effectiveness of the initiatives currently being implemented, suggesting they are exceeding initial expectations and could establish a sustainable growth trajectory for the company’s razor/razorblade business model.