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Ekso Bionics Holdings Inc (NASDAQ: EKSO) Turns Bullish On Revenue Growth Boost

Ekso Bionics Holdings Inc (NASDAQ: EKSO) Turns Bullish On Revenue Growth Boost
Written by
Jim Bloom
Published on
March 29, 2019
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A $100 million joint venture complimented by stellar financial results is some of the catalysts fuelling Ekso Bionics Holdings Inc (NASDAQ: EKSO) upside action. The stock is already up by more than 60%, for the year, as it continues to recoup losses accrued over the past year.

EKSO Share Price Analysis

The bounce back comes on the heels of the stock succumbing to short selling pressure that saw it register a new 52-week low of $1.23. Supported by high turnover in traded shares the stock is on course to complete a turnaround given the strength of the upward momentum.Pullbacks have so far acted as buy opportunities from where bulls have come in and continued to push the stock higher, in continuation of the emerging uptrend. With the upward momentum gaining pace by the day, the next stop could be the $3 a share level. EKSO Daily ChartA rally followed by a close above the $3 technical level should reaffirm the emerging uptrend, setting the stage for Ekso Bionics to make a run for two-year highs. While the stock is trading in a steep uptrend, it is not immune to short selling pressure.Pullbacks, after the recent spike, would have to contend with the $2 mark, which happens to be the immediate support level. A violation of the support level would leave the stock susceptible to further drops, with the next stop being the $1.60 level.

About Ekso Bionics

Ekso Bionics casts itself as a leading developer of exoskeleton solutions. The company develops and sells exoskeletons used in healthcare as well as industrial and military markets. Its solutions are used to enhance strength and mobility across various industrial and medical applications.

Why is Ekso Bionics Surging?

The upside action on Ekso Bionics received a boost on the exoskeleton developer inking a strategic partnership as part of a $100 million joint venture early in the year. The company has entered into an agreement with Zhejiang Youchuang Capital Investments to establish a joint venture.Under the terms of the deal, the joint venture will work on exoskeleton solutions targeting Chinese and other Asian markets. Plans are also underway to create a global exoskeleton-manufacturing center as part of the joint venture.Ekso Bionics has agreed to license its manufacturing technology and relevant patents as part of the deal, in exchange for a 20% stake in the joint venture.The joint venture is expected to develop solutions for addressing the needs of stroke patients in China. More than 2 million people die of stroke-related illnesses every year.

“This joint venture is a transformative opportunity both for Ekso Bionics and for the millions of Chinese stroke and spinal cord injury patients who currently have limited access to advanced rehabilitation technologies. This joint venture positions us to become the leader in both medical and industrial exoskeletons in China,” said Jack Peurach, President and Chief Executive Officer of Ekso Bionics.

Revenue Growth

While the $100 million joint venture did strengthen investor sentiments in the stock, price action activity appears to have received a boost on Ekso Bionics reporting impressive fourth quarter and year-end financial results. A 54% increase in revenues for FY2018 did excite the markets, triggering a spike in share price.Increase in revenues can be attributed to the fact that the company experienced a 50% increase in Ekso shipments.

“We believe this reflects both growing demand from our rehabilitation and industrial customers and greater awareness of the benefits provided by our innovative products. The evidence demonstrating increasing enthusiasm for our technologies in multiple market segments and global territories continues to grow," said Jack Peurach, President and Chief Executive Officer of Ekso Bionics.

Ekso Bionics is also on course to become cash flow positive having seen its margin expand to 45% in Q4, from 32% the previous year. Net loss narrowed to -$4.1 million or $0.07 a share, compared to -$9 million or $0.15 a share reported the previous year.

Bottom Line

Ekso Bionics is slowly turning out to be a juggernaut when it comes to exoskeleton development and sales. A 50% increase in the number of exoskeleton devices sold underscore market acceptance and the fact that the company is gaining traction.Improved operational efficiency, as well as renewed investor interest, highlights the fact that Ekso Bionics is likely to continue edging higher in 2019.We will be updating our subscribers as soon as we know more. For the latest updates on EKSO, sign up below!Disclosure: We have no position in EKSO and have not been compensated for this article.

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