It’s been a long, frustrating wait for shareholders, but Accuray (ARAY) investors are at long last seeing the company start to deliver on at least some of its opportunity in the Chinese radiation oncology market. In addition to starting to recognize real revenue in that huge market, Accuray has continued to deliver on an underappreciated innovation drive and some of those advancements should start impacting orders, sales, and profits in the relatively near future.
Accuray shares have shot up almost 80% since my last (positive) write-up on the company. As I’m not changing my model after a quarter that was close to in-line with my expectations, that makes the valuation argument a little more challenging in the short term. If the company stays on track such that double-digit revenue growth in FY’22 and high single-digit or low double-digit growth for a few years thereafter looks more probable than possible, I could easily see at least a doubling if not close to a tripling of the share price based on what the market has historically paid for that kind of growth from small med-techs.
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Accuray Is Seeing Green Shoots For Its Large China Opportunity
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