The past 12 months have been rough for GenMark Diagnostics (GNMK),
as this molecular diagnostics company has struggled to meet its own
timelines and live up to Wall Street expectations. While
better-than-expected fourth-quarter results gave investors a little
renewed confidence, guidance for 2018 brought that honeymoon to a quick
end.
GenMark remains a high-risk, high-reward
speculative play in molecular diagnostics. This recent flu epidemic has
solidified the place of multiplex systems in clinical practice, but
GenMark is facing an increasingly difficult competitive market, and
there doesn't seem to be as much excitement in the channel as there once
appeared to be. A revenue figure of $200 million in 2022, growing to
over $400 million in 2027, with double-digit FCF margins can support a
meaningfully higher share price, but the company's cash situation is far
from ideal, and it really needs to start posting beat-and-raise
quarters soon.
Read the full article here:
Yet Again, Investors Have To Readjust Expectations For GenMark
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