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Why PROCEPT BioRobotics (PRCT) Could Be 10% Undervalued On Reaffirmed Guidance

Simply Wall St · 1d ago

PROCEPT BioRobotics (PRCT) stock is back in focus after the company reported second quarter 2026 results and reaffirmed full year guidance, highlighting higher HYDROS adoption alongside continued net losses.

See our latest analysis for PROCEPT BioRobotics.

Following the earnings release and reaffirmed guidance, PROCEPT BioRobotics has seen a short burst of optimism, with a 1-day share price return of 5.44% and a 7-day share price return of 25.22%. However, the 90-day share price return is down 10.93% and the year-to-date share price return is down 25.59%, while the 1-year total shareholder return is down 40.70%. This suggests recent momentum is improving after a tougher longer stretch for holders.

If HYDROS driven growth in procedures has you rethinking where robotics might fit in your portfolio, it could be worth sizing up other opportunities using the 39 robotics and automation stocks.

After the latest jump, PROCEPT BioRobotics now trades slightly above the average analyst target and well above some intrinsic estimates. Is the recent enthusiasm already in the price, or is the gap to fair value still appealing?

Most Popular Narrative: 9.4% Undervalued

The most followed narrative on PROCEPT BioRobotics sees fair value at $25.26 per share versus the latest close at $22.89. That gap, according to the author, rests on a confident view of growth, profitability potential and the current share price reset.

I have been an investor in PRCT since before IPO. The wild fluctuations in share price recently make no sense. The sell side analyst who chased the share price up to highs in 2024 (when the price was way too frothy) are doing the same thing now by revising the share price lower and lower, when clearly the company is still doing a great job. The recent downgrade by Leerink, citing PAE as a possible headwind for PRCT growth, is in direct opposition to what Larry Wood (CEO) stated at the last earnings call. To quote Larry Wood, “I don’t think PAE is a headwind for us at all. I think PAE is a big red herring. It’s a procedure that really does not get performed in any volume in Europe. And the reason it doesn’t get performed is because it doesn’t get paid for because it’s not a very good procedure.” So if you believe Larry Wood, then the company has been grossly oversold and looks very very cheap down here. If PRCT hit the Q2 numbers watch all the sheep suddenly revise their target prices back up again. I think fair value is still up at $47. PRCT had a reassessment of how to report handpiece sales versus procedures and therefore there was a shortfall on revenue. Clearly they could have stuck with the old model and revenue would have been better. Larry is doing a great job of making reporting a direct reflection of procedures being done. If the numbers are delivered, watch this thing fly.

Read the complete narrative.

Curious how this view can still see upside despite current losses and a forecast path that keeps PRCT unprofitable for several years. The narrative leans heavily on sustained revenue expansion, rising margins and a future earnings multiple that assumes a mature, cash generative urology robotics platform. Want to see which growth runway, profitability level and discount rate are doing the heavy lifting in that $25.26 fair value for PROCEPT BioRobotics.

Result: Fair Value of $25.26 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, PROCEPT BioRobotics still carries clear risks, including ongoing net losses of US$109.8 million and a share price that already sits above the average analyst target.

Find out about the key risks to this PROCEPT BioRobotics narrative.

Another View On PROCEPT BioRobotics Valuation

While the most popular community narrative sees PROCEPT BioRobotics as undervalued at a fair value of $25.26, the SWS DCF model points the other way. It places fair value at $16.95 per share, which would leave the current $22.89 price looking expensive rather than cheap. Which story feels more realistic to you?

Look into how the SWS DCF model arrives at its fair value.

PRCT Discounted Cash Flow as at Aug 2026
PRCT Discounted Cash Flow as at Aug 2026

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out PROCEPT BioRobotics for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 49 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With mixed signals around PROCEPT BioRobotics in this article, it makes sense to move quickly, review the data in full and weigh both sides using the 1 key reward and 1 important warning sign.

Looking for more investment ideas beyond PROCEPT BioRobotics?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.