Japan’s Terumo (OTCPK:TRUMY) (4543.T) has never been a particularly flashy company, but the performance of this large and diversified med-tech has been consistently good, and that performance has been rewarded with the market roughly doubling the stock’s multiples over the past decade, driving a double-digit annualized return.
Although I can’t say that I find Terumo conventionally cheap, there are some positive drivers worth watching. A recent agreement with CSL (OTCPK:CSLLY) will see the company enter the attractive plasma collection market, new product launches should drive good revenue growth, and management is committed to growing its diabetes business at a time when many players have deprioritized it. On top of that, there could be underappreciated margin leverage here, as well as more leverage to foreign investment.
All in all, I don’t think that Terumo is particularly cheap, but I do think investors can likely expect a high single-digit annualized return, with some upside if those drivers really come through.
Click here to continue:
Terumo Deserves A Closer Look Ahead Of New Revenue And Margin Opportunities
No comments:
Post a Comment