Pulmonx (LUNG) Stock Forecast & Price Target

Pulmonx Corp has demonstrated a solid financial performance, achieving a total revenue of $83.8 million in 2024, marking a 22% increase compared to the prior year, with both domestic and international revenues contributing positively to this growth. Furthermore, the company’s Q4 2024 results were particularly noteworthy, as it recorded a record worldwide revenue of $23.8 million, reflecting a 23% increase from the same quarter in 2023. The expansion of reimbursement coverage and advancements in patient selection technologies, alongside robust clinical data supporting treatment efficacy, position Pulmonx for continued market penetration and increased physician confidence in its offerings.

Pulmonx Corp reported a gross profit of $17.6 million for the quarter, reflecting a slight decline in gross margin to 74% from 75% in the previous quarter, which may indicate potential challenges in maintaining profitability amidst competitive pressures. The company also experienced a reduction in cash reserves, with cash, cash equivalents, and marketable securities declining from $107.8 million to $101.5 million within three months, raising concerns about liquidity and financial stability. Furthermore, as a small-cap firm, Pulmonx faces inherent volatility and risk, compounded by the pressing healthcare costs associated with the high prevalence of chronic obstructive pulmonary disease (COPD), which could hinder its growth potential and investment attractiveness.