HeartBeam has been initiated with a Buy rating and $4 price target by Roth Capital Partners, which highlighted the company's near-term catalyst of expected FDA clearance for its 12-lead ECG synthesis software. The report cites HeartBeam's compact, credit card-sized, cable-free device capable of synthesizing a full 12-lead ECG as a breakthrough in remote cardiac monitoring. Roth's analysts, led by Kyle Bauser, Ph.D., view HeartBeam as undervalued given its strong clinical validation, lean cost structure, and potential to redefine how arrhythmias are detected and treated in decentralized care environments.
Roth's initiation notes that HeartBeam's pivotal VALID-ECG study demonstrated a 93.4% diagnostic agreement between its synthesized ECG and standard 12-lead systems, supporting reliability in arrhythmia assessment. FDA clearance for the synthesis software is anticipated by the end of 2025, enabling a targeted commercial rollout in concierge and preventive cardiology markets before wider adoption. The firm's model projects profitability by 2027 and estimates revenue of $20 million by 2028, supported by 70% gross margins and scalable recurring revenue streams.
Roth Capital applied a 9x EV/sales multiple to its FY28 estimate, discounted two years at 10%, to arrive at the $4 target. The firm compared HeartBeam's valuation potential to precedent transactions such as Preventice Solutions' $1.2 billion acquisition and BioTelemetry's $2.8 billion buyout. Roth concludes that HeartBeam's AI-driven diagnostic precision, regulatory readiness, and first-mover advantage in 12-lead remote monitoring position it as a compelling opportunity within the high-growth medical technology and digital health sectors. To view the full report, visit https://ibn.fm/FcW8B.
