"MiMedx to top $400M in revenue by 2018: Lake Street • 8:15 AM
Lake Street initiates MiMedx (MDXG.PK) at Buy.
The company is set to triple revenue for its wound care product EpiFix and double sales of AminoFix, its soft-tissue repair offering, analysts say.
The company also "has a foundation of strong intellectual property (100+ patents) and is led by an experienced management team with a history of successfully building and selling medical companies."
Ultimately, Lake Street thinks the company can top $400M in revenue and generate $100M in EBITDA "in the next four to five years."
Price target is $7.50."
"The report is well done. Too bad it wasn't Goldman. $7.50 is short term target."
Is there any chance that Pete can or will settle his insider trading allegation case with the government out of court? Is it possible to pay a monetary fine without admitting any wrongdoing? Is this something Pete would even consider assuming it is possible?
In my opinion, settling this case sooner rather than later will get us to your $7.50 short term target much faster.
If you assume that the gross margin remains the same, they drop 10% to the bottom line after taxes, trade at a 25X PE and don't issue any more shares, you get a stock trading at closer to $10.50 per share. The market cap would be 2.5X sales. Seems cheap to me.
The target is laughable based on his revenue forecast given the company's margins. Imagine what EPS would be on $400 million of revenue. So he looks for revenues to increase 600% and stock price to increase 25%?