Raymond James analyst Rahul Sarugaser remains positive about the potential of Profound Medical (Profound Medical Stock Quote, Chart, News NASDAQ:PROF) as he maintained a \u201cStrong Buy 1\u201d rating, though he did lower his target price to $30.00\/share from $36.00\/share for a projected return of 108 per cent in an update to clients on Tuesday. (All figures in US dollars.) With its headquarters in Mississauga, Ont., Profound Medical is a medical technology company focused on a therapeutics platform that provides the precision of real-time Magnetic Resonance Imaging combined with the safety and ablation power of directional and focused ultrasound technology for the incision-free ablation of diseased tissue. Sarugaser\u2019s latest analysis comes as a ripple effect of a generally softer quarter in the medical technology sector, with Profound expected to release its third quarter financial results on November 4. \u201cWhile PROF\u2019s installation pipeline\u2014that yielded strong 2Q21 results\u2014remains deep, we estimate that TULSA installations continued to be stymied by CV-Delta-driven hospital capacity constraints, so we are projecting relatively flat QoQ Rev., and expect some of this weakness to filter over into 4Q,\u201d Sarugaser said. However, despite the softer overall quarter and fewer unit installations, Sarugaser\u2019s gaze is forward-looking, as his future analysis will have a keen eye on utilization rate of the existing installed base, where there was a 20 per cent sequential increase between the first and second quarters of 2021, and noting that the first quarter of 2022 should be an inflection point for the company as it drives installations from its deep signed-contract pipeline with increased access to hospitals. Sarugaser\u2019s interest is further aroused by the company\u2019s soon to be initiated Level 1 CAPTAIN trial, which will directly compare Profound Medical\u2019s TULSA-PRO image-guided therapeutic technology, which combines real-time magnetic resonance imaging with transurethral, robotically-driven therapeutic ultrasound and closed-loop thermal feedback control, to the standard robotic radical prostatectomy in 201 randomized patients, assigned to TULSA or RP in a 2:1 ratio. Sarugaser notes that the trial\u2019s primary outcome measures include urinary continence and erectile potency at 12 months, and, proportion of patients free from progression to additional treatment at 36 months, though he does expect other data to come from the company at 12 and 24 months, as well. In recent studies, both the rates of incontinence and erectile dysfunction were significantly lower in focal ablation (HIFU) compared to radical prostatectomy in intermediate-risk prostate cancer patients, which Sarugaser notes as a significant development in TULSA-PRO\u2019s quest to become a new standard operating procedure. \u201cWe cannot overstate how important this study is, as it is very likely to engender broad awareness of TULSA throughout the urologist community, driving shorter-term adoption,\u201d Sarugaser said. \u201cMore importantly, should TULSA show superiority to RP\u2014which, given a recent AUA presentation showing significant superiority of HIFU over RP, combined with our analysis that TULSA is objectively superior to HIFU\u2014we have very high confidence TULSA will show superiority over RP, which in turn will redefine TULSA as the standard of care in prostate cancer.\u201d Sarugaser also noted, based on guidance from Profound Medical CEO Dr. Arun Menawat, that the company should be ready to file an application for a permanent Category 1 CPT Code, and that the company should have a ruling from the American Medical Association for reimbursement before 2022 comes to an end. The softer sector has prompted Sarugaser to revise some of his financial projections, as he now projects revenue of $10 million for 2021 (previously $15 million) for a potential year-over-year growth of 42.9 per cent, followed by a tripling to a projected $30.4 million in 2022 instead of the previous $35 million estimate. Accordingly, Sarugaser\u2019s EV\/Revenue multiple projections have risen slightly, as he now forecasts a drop from 30.3x in 2020 (previously 26.8x) to a projected 21.2x (previously 13.5x) in 2021, then to a projected 7.1x (previously 5.5x) in 2022. Meanwhile, Sarugaser continues to forecast EBITDA losses, with loss projections of $22 million in both 2021 and 2022 (previously $20 million in each year) after reporting a $14 million loss in 2020. Consequently, the EV\/EBITDA multiple projections continue to be negative, moving from a reported -15.5x (previously -13.7x) in 2020 to a projected -10x (previously -9.4x) in 2021, remaining there in an unchanged 2022 projection. Despite the target price drop, Sarugaser\u2019s conviction in the company\u2019s overall fortunes remains unchanged. \u201cPROF\u2019s team continues to execute extremely well, even through CV-Delta hospital capacity restrictions, so, with our strong visibility on \u201822 Rev., combined with important upcoming catalysts\u2014the CAPTAIN level-1 study, and PROF\u2019s CPT reimbursement application\u2014we maintain our Strong Buy (1) rating,\u201d Sarugaser said. Overall, Profound Medical\u2019s stock price has dropped 41.4 per cent over the course of 2021, steadily dropping after reaching a high point of $35.63\/share on February 5.