FLGT - Fulgent Genetics: A Buy If You Believe COVID Testing Is Here To Stay
- Fulgent Genetics gains have been spectacular since the company entered the COVID testing market - the stock is up >250% over past 12 months.
- Revenues of $421m in FY20 were almost entirely due to the sale of COVID test kits. In FY19, Fulgent earned just $32m.
- The company is forecasting for $830m revenues in FY21, this time with a $100m contribution from its ex-COVID genetic sequencing/testing divisions.
- Return to work, travel, and event attendance protocols are potentially increasing demand for COVID testing.
- Fulgent may therefore keep driving top-line revenues long term, which makes a bull case for the company's share price, although the risk is high.
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Fulgent Genetics: A Buy If You Believe COVID Testing Is Here To Stay