Axonics Risk/Reward Ratio Is Less Favorable, Analyst Says While Downgrading Stock

Needham downgraded Axonics Inc AXNX from Buy to Hold.
The analyst said urologist survey responses suggest the company may have difficulty driving the upside to the consensus 2023 revenue estimate.
AXNX looks likely to gain market share, with respondents expecting AXNX SNM devices to increase from 37.4% of their procedures over the last 12 months (LTM) to 41.6% over the next 12 months (NTM).
Related: FDA Approves Axonics' Recharge-Free Sacral Neuromodulation System.
However, respondents expect their SNM procedure volumes to increase by 2% over the NTM.
The survey implies that AXNX could see SNM growth of 14% over the NTM, which compares to the consensus 2023 estimated SNM growth of 24%.
Respondents expect their bulking agent procedure volumes to increase by 21% over the NTM, which compares to the consensus 2023 Bulkamid growth estimate of 28%.
"We also believe that the F15 product cycle is primarily reflected in AXNX shares at this point and do not expect any additional primary product cycles in the next 12-18 months."
Needham says that AXNX shares are now fairly valued.
Price Action: AXNX shares are down 4.83% at $69.01 on the last check Monday.

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