LMNX - GenMark: Early Stages Of Accelerated Growth But Gross Margins Valuation Balance The Investment Debate

• GenMark is in the early stages of an accelerated growth phase, backed by the cadence of ePlex instillations, having benefitted from a large Covid-19 tailwind.
• Management are solid on scaling production to 250K ePlex units by Q3 2021 and are aiming to reach 60% gross profit margins over the coming years.
• Current gross margins alongside unattractive valuations balance the investment debate, and organic growth requires additional scrutiny ex-Covid.
• We feel the reward proposition leaves us less constructive on shares, and we hold a neutral view in the investment debate, although are bullish on the long-term outlook.
• Here, we cover all of the moving parts in the investment debate to guide investors in their own investment reasoning.

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