Wednesday, October 30, 2019

Accuray Drifting, And Critical Mass Seems Far Away

Another quarter is in the books and not a lot has changed for Accuray (ARAY). This remains a perpetually frustrating story as the company has meaningfully improved the functionality of its systems, but those improvements haven’t shown up in orders, revenue, market share, or profits. While new data, reimbursement, and product enhancements could give a spark to CyberKnife, and China remains an attractive opportunity in concept, it’s going to take still more time for those to develop into real drivers.

Pre-market indications are that Accuray is going to sell off on fiscal first quarter results, but I didn’t find them all that bad. Still, I don’t see that near-term spark to shift sentiment or drive investors to take another look at the shares, so while I think Accuray probably deserves to trade closer to the mid-single-digits, the company is still a long way from critical mass in orders or revenue and catalysts are slow to emerge.

Read more here:
Accuray Drifting, And Critical Mass Seems Far Away

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