EW - Abiomed: Valuation Drivers Justify The Premium Over Peers

• Abiomed shares continue their positive outlook, driven by sales momentum in the Impella 5.0 & 5.5 platforms.
• Excellent balance sheet management with no debt load signals, high free cash conversion, and equity concentrated capital structure.
• The company continues to realise net positive cash from operations, and Q4 sales momentum serves as an indicator for FY2021 expectations.
• Shares come in at a premium to peers, although much of the premium is justified by strength in valuation-return drivers.
• Shares are worth $376 on 3-year historical average FCF multiples of 60x FY2021 FCF projections.

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