We came across a bullish thesis on PROCEPT BioRobotics Corporation on Notes From The Beauty Contest’s Substack by Crashkolnikov. In this article, we will summarize the bulls’ thesis on PRCT. PROCEPT BioRobotics Corporation’s share was trading at $29.21 as of February 9th.
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PROCEPT BioRobotics Corporation, a surgical robotics company, focuses on developing transformative solutions in urology in the United States and internationally. PRCT is positioning itself as a potential new gold standard in the treatment of benign prostatic hyperplasia (BPH) through its automated robotic surgical system, AquaBeam. Today, the vast majority of the tens of millions of men seeking treatment for BPH rely on pharmaceuticals that are often imperfect, while surgery represents only a small fraction of the treatment landscape.
PRCT’s strategy is straightforward but ambitious: take share from drug therapy by expanding the surgical market with a differentiated, technology-driven solution. Since its 2021 IPO, revenue has surged, with 2025 sales expected to be roughly 9.5 times higher, reflecting rapid adoption. However, despite growth fueled by robotics and AI enthusiasm, the stock has reversed sharply in 2025 as investors grapple with key uncertainties around profitability, moderating growth, total addressable market size, and the timing of breakeven—especially after a new CEO signaled increased near-term investment.
Leadership is central to the thesis. Larry Wood, formerly of Edwards Lifesciences where he helped scale TAVR into a multi-billion-dollar standard of care, now leads PRCT after previously serving on its board. His upcoming investor day is expected to outline multi-year revenue and profitability targets, alongside strategic updates that could reset expectations.
The opportunity hinges on differentiated technology, credible execution, and patience amid uncertainty, with significant optionality if PRCT successfully expands into adjacent markets. While the company remains unprofitable and is valued on EV/sales, its projected 2026 growth—roughly double Intuitive Surgical and triple Boston Scientific—suggests meaningful upside if execution materializes, with acquisition potential also a realistic outcome.
Previously, we covered a bullish thesis on Intuitive Surgical, Inc. (ISRG) by Kontra Investment Xchange in December 2024, which highlighted the company’s leadership in robotic surgery, expanding installed base, strong procedure growth, AI integration, and long runway for global adoption. ISRG’s stock price has depreciated by approximately 9.07% since our coverage. Crashkolnikov shares a similar thesis but emphasizes on PROCEPT BioRobotics’ niche BPH focus and earlier-stage growth trajectory.
PROCEPT BioRobotics Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held PRCT at the end of the third quarter which was 26 in the previous quarter. While we acknowledge the risk and potential of PRCT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PRCT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None.
