Tuesday, January 14, 2014

Seeking Alpha: The Story Is Working For AngioDynamics

Investors who had been waiting patiently for AngioDynamics (ANGO) to get sentiment turned around should be happy with the better-than-50% return over the past year. The company still has work to do in taking share back from large rivals like Bard (BCR), but I think the company is on the right track. It also doesn't hurt that the company is getting more serious about restructuring operations with an eye towards better margins.

Valuation is a trickier question. On a cash flow basis, it's hard to get there even if you assume Bard or Covidien-like (COV) free cash flow margins. The good news is that med-tech stocks are seldom ever limited by DCF-based valuations and if you assign what would otherwise be a low med-tech multiple of 2x next year's sales, the stock would still be less than 10% undervalued.

Read the full article here:
The Story Is Working For AngioDynamics

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