VIVO - Meridian Core Business Facing Difficulties Beyond Covid-19 Bonanza
Investment Thesis
Beyond COVID-19 diagnostic test sales, Meridian Bioscience Inc (VIVO) core businesses are facing increased competition that the company historically failed to handle. This is demonstrated by lower revenues and decreased margin before the COVID-19 bonanza. The company recently brought in new management that ventured into a turnaround plan that entails higher research and development (R&D), acquisition, and debt.
Current prices do not incorporate the uncertainty regarding the company's turnaround strategy. There isn’t much room for the stock to go up and investors should consider taking profit unless they have reasons to