CeriBell, Inc.: Initiation of Research Coverage

William Blair initiated research coverage of CeriBell, Inc. (CBLL $26.42). The Ceribell ecosystem is an AI-powered point-of-care electroencephalography (EEG) device used in the detection of seizures and other neurological conditions in the acute-care setting.

Analyst Margaret Kaczor Andrew estimated that the company would generate revenue of $63.8 million in 2024, growing 27% to $81.0 million in 2025, with a further 29% increase in 2026.

"Brain monitoring is a large, underpenetrated market," Kaczor Andrew said. "The Ceribell ecosystem-made up of its easy-to-use 10-electrode EEG headband, Clarity AI-driven algorithm, and cloud-based portal for readings-is disrupting and building on the roughly $2.0 billion domestic market for seizure detection. With new indications and growing clinical evidence supporting market expansion, coupled with its first-mover advantage, we believe sales can grow 25%-30% or more over the next three years with penetration of less than 5%. Our discussions with physicians suggest that 1) rapid EEG routinely leads to seven-figure ROI for hospitals annually; 2) there is room for utilization growth and deeper penetration as hospitals expand use of rapid EEG across departments; 3) indication expansion into delirium, stroke, encephalotomy, or others not included in models today could drive more frequent use; and 4) rapid EEG addresses coverage gaps due to neurologist and EEG tech shortages."

Kaczor Andrew continued, "With the company now on its seventh generation of AI-backed software and growing clinical society support, we believe it is ready to enter the next phase of development. Here we see a number of opportunities, centered on growing its account base, driving deeper utilization per account, and increasing ASPs."

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William Blair or an affiliate received compensation for investment banking services or non-investment-banking services from CeriBell, Inc. within the last 12 months. CeriBell, Inc. is or was, within the last 12 months, an investment banking client of William Blair and/or one or more of its affiliates.

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Coverage Universe
Outperform (Buy): 72%
Market Perform (Hold): 27%
Underperform (Sell): 1%

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Market Perform (Hold): 1%
Underperform (Sell): 0%

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