EW - Zynex Inc.: Demand-Pull Order Growth To Finish 2020 Inventory Still Questionable

• Zynex is well positioned to capitalize on recent fundamental momentum in sales volume and top-line growth.
• Such momentum hasn't yet translated to share performance, and the market continues to discount Zynex shares.
• Questions around management's posture on inventory remain, and language surrounding the topic continues in each earnings call.
• Management have commenced a $10 million buyback program that reflects the view of investors unfairly punishing Zynex share pricing.
• We see a fair value of ~$22 based on a blended discounted multiples approach of 37x Q1 gross profits and 5x 2022 sales discounted at 15%.

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