AngioDynamics Continuing To Slowly Shift Its Mix Towards Growth

Following AngioDynamics (ANGO) may be a little like watching paint dry given the low growth rate (often a severe valuation-limiting issue in med-tech), but the stock has at least outperformed the average med-tech stock since my last write-up in July and has outperformed more significantly over the past 12 months (over 25% versus around 10%).

AngioDynamics remains a hurry-up-and-wait story, with significant potential in the NanoKnife business. Oncology in general remains a worthwhile opportunity for AngioDynamics, and I won’t be surprised to see the company make further portfolio moves, perhaps including the sale of under-performing low-potential segments. Execution has been hit-or-miss here for a long time, though, and while the NanoKnife has meaningful upside on positive trial outcomes, a negative trial result would seriously undermine the value. With around 10% upside in my base case and closer to 20% upside in my bull case, I’d consider this a borderline buy today.

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AngioDynamics Continuing To Slowly Shift Its Mix Towards Growth