H.C. Wainwright has lowered its price target on electroCore Inc. (NASDAQ: ECOR) to $18.00 from $25.00, while leaving its rating on the stock at Buy. The firm pointed to a combination of rising operating costs, greater interest expense and anticipated legal fees as the drivers behind the downward revision.
The move follows electroCore's Jan. 20, 2026 announcement of preliminary results for fiscal year 2025. Management reported full-year revenue in a band of $31.8 million to $32.0 million, which represents a 26% increase compared with the prior year. That range sits in line with the midpoint of the company's prior guidance of $31.5 million to $32.5 million.
For the fourth quarter of 2025, electroCore disclosed preliminary revenue of $9.0 million to $9.2 million, a 30% gain versus the same quarter in 2024. Management attributed the year-over-year rise in part to strong performance across its prescription device and health and wellness segments.
Despite those revenue gains, the company reported a lower cash balance at year-end. electroCore closed 2025 with $11.6 million in cash, down from $13.2 million at the end of the third quarter, implying a quarterly cash burn of roughly $1.6 million between Q3 and year-end. The company also reported a net loss for the third quarter of 2025.
In explaining its decision to reduce the price target, H.C. Wainwright highlighted rising operating expenses and higher interest costs. The firm also factored in expected litigation-related fees in the range of $1.5 million to $2.0 million. Those cost pressures prompted the brokerage to lower its valuation despite retaining a positive view on the company's prospects.
H.C. Wainwright's modeling projects electroCore's revenue to reach $42 million in 2026 and to expand further to $121 million by 2032. electroCore management has scheduled the release of complete financial statements for March 2026.
Management reiterated its expectation to report record full-year revenue for 2025 at approximately $31.8 million to $32.0 million, consistent with the preliminary figures. The company said fourth-quarter revenue for 2025 is expected to be around $9.0 million to $9.2 million, marking a 30% improvement relative to Q4 2024. The firm has provided forward guidance that signals continued revenue growth and operational expansion as it pursues broader product offerings and greater market presence.
Context and market positioning
At the time of the analyst revision, electroCore was trading at $7.47, which places the stock well below the analyst consensus target range of $12.00 to $25.28. The company's share performance has nonetheless delivered returns of more than 66% year-to-date, as reported by InvestingPro data.
Investors will be watching the company's full 2025 financial report in March 2026 for detailed results and updated guidance, and will also monitor cash flows, expense trends and any further information regarding litigation costs.