Saturday, April 12, 2014

Seeking Alpha: AngioDynamics Delivering The Growth, Margins Next?

When it comes to publicly-traded companies, growth fixes a lot of issues and AngioDynamics's (ANGO) return to revenue growth has seen the stock outperform nicely over the past year. There are certainly considerable challenges left for AngioDynamics management, including taking share from Bard (BCR) and Teleflex (TFX) in vascular access and maximizing the value of newer offerings like BioFlo and AngioVac. Efforts to restructure the business and generate better margins are likewise a big part of the bull thesis.

These shares are still in that grey area of "strong hold" for me. The shares don't appear all that cheap by discounted cash flow, even giving management the benefit of the doubt on margins, but the EV/revenue multiple is quite low and this is often the number that institutional investors follow. So long as the company can post better growth numbers and keep the margin improvement story alive, I would think retesting the high teens is a credible expectation.

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AngioDynamics Delivering The Growth, Margins Next?

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