Canaccord Genuity Maintains a 'Buy' on AngioDynamics (ANGO); Huge Deal - Like the Boldness, Don't Love the Price
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Price: $15.70 -0.76%
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
8 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity maintains a 'Buy' on AngioDynamics (NASDAQ: ANGO) price target cut $1 to $16.50.
Analyst, Jason R. Mills, said, "With limited information about ANGO’s proposed acquisition of Navilyst Medical, we see both notable pros and cons. With respect to the latter, it appears to us, at least at this point, that ANGO paid too high a price (2x sales and 9.5x EBIDTA) for a business with minimal growth and GM in the 40% range. On the other hand, the expected synergies contemplated by management make sense, and we think this team is very capable of executing on the integration to realize both sales and cost synergies. If so, the deal could prove very accretive – to the tune of $50M FCF annually within a few years, in our estimation. What’s more, we like the boldness of the deal, and favor the change in capital structure (lower cost of capital)."
For an analyst ratings summary and ratings history on AngioDynamics click here. For more ratings news on AngioDynamics click here.
Shares of AngioDynamics closed at $12.96 yesterday.
Analyst, Jason R. Mills, said, "With limited information about ANGO’s proposed acquisition of Navilyst Medical, we see both notable pros and cons. With respect to the latter, it appears to us, at least at this point, that ANGO paid too high a price (2x sales and 9.5x EBIDTA) for a business with minimal growth and GM in the 40% range. On the other hand, the expected synergies contemplated by management make sense, and we think this team is very capable of executing on the integration to realize both sales and cost synergies. If so, the deal could prove very accretive – to the tune of $50M FCF annually within a few years, in our estimation. What’s more, we like the boldness of the deal, and favor the change in capital structure (lower cost of capital)."
For an analyst ratings summary and ratings history on AngioDynamics click here. For more ratings news on AngioDynamics click here.
Shares of AngioDynamics closed at $12.96 yesterday.
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