PEN - AngioDynamics: Lumpy Progress Is Still Progress

2024-07-17 15:16:10 ET

Summary

• AngioDynamics stock reacted positively to fiscal Q4 results, up over 25% in a day, as the company saw 8% sequential revenue growth and 14% growth from the Med Tech portfolio.
• Auryon and NanoKnife generated double-digit year-over-year growth, while AlphaVac bounced back strongly on a sequential basis, and gross margin improved more than three points.
• Execution remains the key here, as Auryon, AlphaVac, and NanoKnife all have legitimate growth potential, but significant competition as well.
• Overall growth of around 7% over the next three years can support a fair value in the low-teens, but there is little margin for error here.

It’s too early to declare that AngioDynamics (ANGO) is in the clear after years of restructuring and disappointing financial results, but the situation looks better to me and the stock certainly reacted well to fiscal fourth quarter results on July 16. Up more than 25% in a day, that pulled AngioDynamics’ performance up to about an 8% gain since my last update , an almost 10% outperformance relative to the broader med-tech space....

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