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My New Price Projection for Ekso Bionics (EKSO)

I'm getting quite a few questions lately regarding one my favorite companies, Ekso Bionics Holdings Inc. (OTCBB: EKSO).

As you know, the company is tied into one of the most dynamic Total Wealth Trends of all – and potentially the most profitable, too – Human Augmentation.

So I thought we'd revisit EKSO Bionics and, in the process, update some of the interesting stuff that's going on.

But first, I owe you an apology.

I totally underestimated the company's potential.

Let me show you why – and my new price per share.

This Upward Revision Will Send EKSO Soaring Higher Than I Predicted

Ekso BionicsLast October I explained why I thought EKSO stock would be worth $21.14 per share by 2020.

Now I need to revise that number – higher. Turns out I was simply too conservative in my thinking.

At the time, I believed that EKSO will capture 25% of the human augmentation market. That's still true. What's changed is my thinking on profit margin, and that's based not only on what EKSO itself is doing, but on what's happening in the broader industry itself.

Simply put, these revisions paint an even more bullish picture for the stock.

My new price is $21.85 a share by 2020 rather than the $21.14/share I originally predicted (details in the sidebar for those of you who like numbers as much as I do).

Not surprisingly, I'm more excited about the company's profit potential than I've ever been before.

That said, I recognize that you may feel a little trepidation when it comes to my enthusiasm, especially if you bought in at or near $1.91/share, the company's peak before it slid down to $1.16 where it's trading now, at the time of this writing (Jan. 30).

Try not to let that bother you.

My New EKSO Share Projections

  • EKSO is able to capture 25% market share, resulting in $450 million of revenue
  • Assume an 11.6% profit margin (the average of its industry: Medical Instruments and Supplies)
  • Therefore the company would achieve (from the medical devices segment alone) net income of $52.2 million
  • Assuming no additional share dilution there would be 78.61 million shares outstanding
  • Therefore, earnings of $0.664 per share
  • PE ratio of 32.9 (based on industry average)
  • Therefore, a potential share price of $21.85 by 2020, which represents a 1,751% gain from today's price of $1.18/share

Fluctuations like we've seen with EKSO over the last few months are standard and entirely unremarkable for any growth company on the cusp of some really game changing technology – though I'll be the first to admit that it doesn't always FEEL that way.

Normal Growing Pains for an Extraordinary Company

So let's take a minute to put that in perspective.

EKSO's trading around $1.20 a share at the moment, and that means it's up about 20% since I initially recommended it. But so is volatility, as a number of you have so succinctly noted.

I totally get where you're coming from, especially if you are not used to making the kinds of moves we're making. This clearly isn't Intel or even Microsoft.

This is a breakthrough company operating at the very bleeding edge of new medical technology. So it's going to trade erratically, just as all new companies do under similar circumstances. If you recall, that's why I deliberately chose "keeping emotion out of the equation" as the first Total Wealth Tactic to share with you.

Think about it for a minute…

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About the Author

Keith Fitz-Gerald has been the Chief Investment Strategist for the Money Morning team since 2007. He's a seasoned market analyst with decades of experience, and a highly accurate track record. Keith regularly travels the world in search of investment opportunities others don't yet see or understand. In addition to heading The Money Map Report, Keith runs High Velocity Profits, which aims to get in, target gains, and get out clean. In his weekly Total Wealth, Keith has broken down his 30-plus years of success into three parts: Trends, Risk Assessment, and Tactics – meaning the exact techniques for making money. Sign up is free at totalwealthresearch.com.

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  1. Philip Rodi | February 9, 2015

    GREAT INSIGHT ON EKSO I WILL WATCH, I ALREADY HAVE SHARES I WILL SEE ABOUT MORE AS I WATCH YOUR RESEARCH GO FORWARD, WISH I WERE YOUNGER BUT THAT IS NOT A COMPLAIANT.

  2. David Zeiler | June 3, 2015

    Here's a link to Keith's response regarding EKSO (on his Total Wealth Research website):
    http://totalwealthresearch.com/2015/06/how-to-handle-a-short-attack-on-a-stock-you-own/

  3. Alphonse Cauter | January 6, 2016

    Dear sir

    EKSO maybe good but RWLK doubled.

    Regards A

  4. Russ | February 23, 2016

    Would LOVE to know your thoughts on $MLER. Thanks for info on $EKSO…it helped me make my decision. :) Now…check out http://www.moller.com. Thoughts?

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