Needham While we expect MDXG to sustain above-peer revenue growth for the next
few years, its EV/sales multiple is trading at a discount to peers and we reiterate our
Craig Hallum We think yesterday's poor stock performance was a
function of some minor near-term disappointments regarding the update (and
modestly increased) guidance and weakness in the broader biotech segment
ahead of last night's Democratic debate. Below, we detail what we view as
the key takeaways from the analyst day and believe that yesterday's pullback
represents a good buying opportunity as this growth story moves ahead. We
reiterate our Buy rating and $13 price target.
Brean Acquisitions: Management indicated they were interested and open to acquiring
synergistic technologies. They just took a $50 million credit line, which may be used for
such acquisitions.Continued growth within the core DFU/VLU opportunity along with expansion of the company’s amniotic tissue platform should drive revenue growth over 50% this year and maintain growth
well above 20% over at least the next three years, with upside potential from its micronized
product and human collagen products. This top-line growth profile, combined with at least
another 1000bp of expected margin improvement, places MDXG among the fastest growing
small- to mid-cap names in our universe. We are applying its current multiple of 7x EV/Sales to
our 2016 estimate to get a $16 target price.
First Analysis While our lower 2016-2017 EPS outlook reflects a timeline for operating
margin expansion that is extended based on current growth investment
initiatives, our revenue outlook is unchanged, and we view yesterday’s
14% stock price pull-back as creating an attractive buying opportunity
with shares trading at 3.7x our 2016e revenue, a discount to the 6.5x
median forward multiple the stock has traded at over the past five
We maintain our 12-month price target of $14 and our overweight
rating for this rapidly growing market leader in advanced wound care
with a strong regenerative biomaterial portfolio addressing large and
underserved patient populations.
the 5 year plan is for "show". There is no 5 year plan at this point. never has been
Probably the biggest flurry of posts from shorts and Orgo boiler shop employees in memory the last few days. if that doesn't smell of desperation, don't know what does. They are very afraid and Orgo probably raised their pay to 50 cents per negative post to bash the company as they were embarrassed and exposed for their legal action and are literally seeing their business with their obsolete product vaporizing.
Company essentially guided to $500 million plus revenue in 5 years buy laying out expectations that surgical will be about the size of wound care business in 5 years. Analysts using a 7X multiple equates to $27+
Yes, I believe the primary use is to reduce damage and promote healing after heart attacks. The results in the mice studies were pretty startling. As you might imagine, the market potential here is very large. Not a near term thing but a huge potential add on to a potential acquirer
Now THAT's funny! LOL! I think their booth was close to MDXG's at the recent big conference. Their opinion means as much as something employees at Organogenislime would say.
Conflicts of Interest: JED and HBS are employees of Smith & Nephew, Inc.
How are things at Orgo Daniel? I know it hurts to go from being the leader to a company with a now obsolete product whose biz is all going to MDXG but you will just have to live with it cause your biz will be totally gone soon enough.
Although we knew it was the slime at Orgo nice to see MDXG is finally able to call them out for the slime that they are. Pretty good bet that Candy and his henchman are also employed there.
Fading company? That's a good one. Close to $200 million revenue this year. Market share double that of Grafix and the lead is growing. Yes, thousands of doctors will continue to use a product that they have used for years because it works, it works better than Grafix and is far easier and less costly to use. It's a no brainer, if you only had one.
Special! Today only! Buy some Grafix today and we will upgrade your free frig to stainless steel! Yes, you heard right! Free stainless steel friges for anyone buying Grafix today only! Ofer void where prohibited. Not available for employees of OSIR or their family members.
Without question. Whenever the shorts get nervous they send out their boiler room Walmart folk to the message boards. Note how pirate and others are out in full mass? They are very afraid about now. And, they have reason to be. More punishment awaits them. Shorting at $3 didn't work for them, nor at $4 or $5 or $6. Shorting here just as deadly.
You can find it in the roughly $30 million of revenue it generated this year.
Cez would not have been invited to analyst day. it is for analysts and mainly accredited investors and although most of us old timers here are, he and candy and their band of losers most certainly are not.