Organizational Restructuring: Accuray has announced the first phase of its strategic transformation plan aimed at enhancing competitiveness and supporting long-term strategy through organizational optimization and outsourcing of non-core activities.
Workforce Optimization: The plan will affect approximately 15% of employees, with an expected annual operating profit improvement of $25 million, of which about $12 million is anticipated to be realized in fiscal 2026.
Cost Control: The restructuring is expected to incur approximately $11 million in charges, primarily related to workforce reductions, facility consolidations, and contract terminations, ensuring the company remains agile in future market competition.
Strategic Support: Accuray's strategic lending partner TCW has expressed support for the plan, viewing it as a crucial step to strengthen the foundation for future growth and margin expansion.
ARAY
$1.05+Infinity%1D
Analyst Views on ARAY
Wall Street analysts forecast ARAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARAY is 4.00 USD with a low forecast of 4.00 USD and a high forecast of 4.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
Wall Street analysts forecast ARAY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for ARAY is 4.00 USD with a low forecast of 4.00 USD and a high forecast of 4.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 1.060
Low
4.00
Averages
4.00
High
4.00
Current: 1.060
Low
4.00
Averages
4.00
High
4.00
BTIG
Buy
maintain
$4 -> $5
2025-08-14
Reason
BTIG
Price Target
$4 -> $5
2025-08-14
maintain
Buy
Reason
BTIG raised the firm's price target on Accuray to $5 from $4 and keeps a Buy rating on the shares. The company's Q4 sales beat was driven by $70.7M in Product revenue and the firm applauds Accuray's ability to execute through a hectic final quarter in FY25, as shipments to China were essentially halted at the start of the quarter and then resumed in May with tariff rates easing, the analyst tells investors in a research note.
BTIG
Buy
downgrade
$5 -> $4
2025-06-06
Reason
BTIG
Price Target
$5 -> $4
2025-06-06
downgrade
Buy
Reason
BTIG lowered the firm's price target on Accuray to $4 from $5 and keeps a Buy rating on the shares. The firm notes Accuray announced that it will exchange its convertible notes, refinance its debt, and enter into a new credit facility. The exchange is expected to be completed on June 11. This will result in Accuray having about $18M in outstanding 2026 convertible note principal, $150M in debt from the new 2030 term loan, and 15M in new shares issued, the firm notes. BTIG is pleased to see Accuray address its 2026 borrowings and believes this removes investor concerns about near-term debt maturity, while preserving a healthy balance sheet. The firm acknowledges the share dilution and potentially higher interest expense, though the paid in-kind option allows Accuray's cash outlays on interest expense to remain relatively similar going forward.
About ARAY
Accuray Incorporated is a radiation therapy company. The Company develops, manufactures, sells and supports solutions that are designed to deliver radiation treatments for complex cases. Its solutions are designed to advance patient care: during each individual treatment, throughout the treatment process, and at each stage of the cancer treatment journey, from curative to palliative treatments. Its technologies, the CyberKnife and TomoTherapy platforms, including the Radixact System, its TomoTherapy platform, are designed to deliver advanced treatments, including stereotactic radiosurgery (SRS), stereotactic body radiation therapy (SBRT), intensity modulated radiation therapy (IMRT), image-guided radiation therapy (IGRT), and adaptive radiation therapy (ART). In addition to these products, it also provides services, which include post-contract customer support (warranty period services and post-warranty services), installation services, training, and other professional services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
