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Zynex (NASDAQ:ZYXI)‘s stock had its “neutral” rating reaffirmed by Zacks in a research report issued to clients and investors on Tuesday, American Banking News reports. They currently have a $0.40 target price on the stock. Zacks‘s price objective would suggest a potential upside of 20.12% from the company’s current price.

Zacks’ analyst wrote, “Both revenue and gross margins have taken a big hit in the electrotherapy business, which remains the bulk of ZYXI revenue. It’s now obvious that recent healthcare reform measures and changes to reimbursement are the culprit – something we had been concerned about. ZYXI will now have to have a more determined focus on diversifying revenue sources and reducing exposure to third-party reimbursement. New product launches, a new medical billing and consulting segment, and collaborations may now be where the growth opportunities exist – but may not materialize for some time. Another key to maximize EPS is controlling op expenses, which has been an issue for Zynex. Electrotherapy revenue finally looks to be stabilizing and incremental sales coming from ancillary businesses. Longer-term upside to our model could come from pipeline and new services business. Liquidity is very tight, is a concern and needs to be addressed “

Shares of Zynex (NASDAQ:ZYXI) traded down 22.56% on Tuesday, hitting $0.333. The stock had a trading volume of 12,270 shares. Zynex has a 52-week low of $0.20 and a 52-week high of $0.51. The stock has a 50-day moving average of $0.45 and a 200-day moving average of $0.3. The company’s market cap is $10.4 million.

Zynex (NASDAQ:ZYXI) last announced its earnings results on Thursday, March 27th. The company reported ($0.14) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.03) by $0.11. On average, analysts predict that Zynex will post $-0.10 earnings per share for the current fiscal year.

Zynex, Inc operates under three primary business segments: Zynex Medical, Zynex NeuroDiagnostics and Zynex Monitoring Solutions.

To view Zacks’ full report, visit Zacks’ official website.

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