APEN - Apollo Endosurgery: New Management Bounce Makes Weight Loss Specialist A Buy
- Apollo Endosurgery is a medical device company developing innovative medical devices to advance gastrointestinal therapeutic endoscopy.
- The company's share price is +421% over the past 12 months and +130% since the arrival of a new CEO, Charles "Chas" McKhann in February.
- Although revenues fell ~18% between FY19 and FY20 owing to pandemic pressures, management is guiding for $55-57m of revenues in FY21.
- The company has 3 exciting growth opportunities - breakthrough device designation for its gastric balloon in NASH, a stand-alone weight loss indication for its OverStitch suturing device, and newly launched X-Tack.
- As such, shares still look cheap at ~$8.6, and a market cap of $233m undervalues the company and its opportunities, in my view.
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Apollo Endosurgery: New Management Bounce Makes Weight Loss Specialist A Buy