It’s been a rough go for Accuray (NASDAQ:ARAY) since my last update on the shares. The combination of a weaker tape for small-cap med-tech and a lackluster fiscal third quarter hasn’t been a good one for the shares, which have lost close to 20% of their value since that last article – despite not much real change in the outlook. I get that Accuray is a frustrating stock to hold, and it has been for some time – investors have been waiting years for the supposed advantages of the CyberKnife system, the improvements to the Tomo platform, and the opportunities in China to deliver, and we’re still not quite there yet.
That said, I do believe the opportunity in China is real, and the technological improvements to Accuray’s systems, as well as a shift toward more hypofractionation in radiation oncology could finally be the right combination to unlock the potential here. I continue to believe that $6 to $7 is a fair price for now, but if the opportunity in China lives up to its potential, a double-digit share price is not hard to imagine.
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More 'Hurry Up And Wait' For Accuray, But The China Opportunity Is Coming Through
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