ABMD - Abiomed's Profit Growth Slows On R&D Sales Hold Strong Despite Shortages

• ABMD had a decent quarter where revenues grew nicely but profits languished due to sudden growth in R&D spend.
• Companies like ABMD have to expense R&D, which is not a problem, but a lack of profit growth isn't great given its valuation.
• The multiple doesn't offer much of a margin of safety, but we recognise the premier product portfolio.
• Overall, there is a defensive angle for the stock given rate increases, but the valuation is too much of a concern.

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