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Kestra Medical Technologies (KMTS) has drawn investor attention after recent trading left the stock about 23% lower over the past month and roughly 28% lower over the past 3 months.
See our latest analysis for Kestra Medical Technologies.
With the share price at US$19.46, the stock has a 7 day share price return of 1.9%. However, the 30 day and year to date share price returns of about 23% and 20% declines point to fading short term momentum, despite a 1 year total shareholder return of roughly a 17% decline.
If you are weighing opportunities across medical technology and digital health, it can help to compare Kestra with other healthcare names using a focused screener for 34 healthcare AI stocks
Given the share price reset and a value score of 1, along with revenue of US$83.721 million against a net loss of US$148.121 million, is this weakness a potential entry point, or is the market already pricing in future growth?
Analysts see fair value for Kestra Medical Technologies at about $29.14 per share, compared with the recent close of $19.46. This setup is framed as a materials growth story in their narrative.
Scalable lease based device fleet, where each system can protect roughly three patients per year and an expected 90% annual reuse rate, enables strong operating leverage as volumes rise and is intended to support progress toward management’s 70% gross margin target and narrower EBITDA losses.
Read the complete narrative. Read the complete narrative.
Want to see what supports that bullish margin journey and ambitious earnings profile? The narrative focuses on rapid revenue expansion, rising reuse of the device fleet and a much richer profitability profile over time.
Result: Fair Value of $29.14 (UNDERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, the story can break if wearable defibrillator adoption stalls, or if Kestra’s capital intensive rental model falls short of utilization and margin expectations.
Find out about the key risks to this Kestra Medical Technologies narrative.
That 33.2% “undervalued” view leans heavily on future earnings power, but the current P/S of 13.6x tells a different story. It is far above the US Medical Equipment industry at 2.8x and the fair ratio of 3.5x, which points to meaningful valuation risk if growth or margins disappoint.
See what the numbers say about this price in the valuation breakdown, then ask whether the premium multiple still feels comfortable for your own time horizon and risk tolerance. See what the numbers say about this price — find out in our valuation breakdown.
