VREX - Varex Imaging: Low-Growth X-Ray Imaging Component Provider Offers Stable Upside

• Varex Imaging Corporation is a leading global designer and manufacturer of image components, particularly X-ray imaging component solutions including X-ray tubes, digital detectors, linear accelerators, and other software image processing solutions.
• Founded from origins in the early 1930s and officially as its current state in 2016, Varex operates nearly 2,000 employees across manufacturing and service centers in North America, Europe, and Asia.
• Varex Imaging Corporation is a reasonably stable company with revenues of $780.6M (+1% y/y), EBITDA of $99M (+16% y/y), net income of $16M (-44% y/y), and cash flow from operations of $72M at FYE 2020.
• Wall Street analysts have set an average "bullish rating" and a short-term price target of $32.80/share (+24% upside), which seems quite high for the relative growth rates and competitiveness of Varex.
• In summary, the author projects Varex Imaging Corporation as a "hold" or stable "buy".

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