Tactile Systems (TCMD) Stock Forecast & Price Target

Tactile Systems Technology Inc. (TCMD) exhibits a promising outlook supported by increased revenue guidance for FY 2025, raised to $317-$321 million, driven by robust growth in its AffloVest business alongside the lymphedema market. The company’s strategic investments in expanding its sales force and enhancing productivity through new technologies are expected to yield substantial operational benefits, with gross margins anticipated to remain around 75%. Furthermore, the upcoming fiscal year is likely to benefit from favorable external conditions, such as streamlined patient access to care and favorable regulatory dynamics, which collectively position TCMD for sustained growth.

Tactile Systems Technology Inc. has revised its revenue expectations downward for its lymphedema segment while experiencing some growth in Airway Clearance, indicating concerns over demand in a critical area representing approximately 85% of its revenues. The company has reported a gross margin of 76%, exceeding previous estimates, yet the operating margin of 12.8% raises concerns about the overall profitability given the operational risks identified, such as slower sales uptake and competitive pressures. Additionally, ongoing visibility issues following successive guidance reductions further heighten uncertainty surrounding the company’s financial outlook and growth potential.