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.
Continue here to the full article:
AngioDynamics Delivering The Growth, Margins Next?
No comments:
Post a Comment