AngioDynamics: Improving Financial Performance And Good Clinical Data Reinvigorate The Shares

2025-01-16 05:07:22 ET

Summary

• AngioDynamics' fiscal Q2'25 results exceeded expectations, with Med Tech growing 25% and delivering better gross margins, boosting confidence in achieving high single-digit revenue growth and double-digit EBITDA margins in time.
• Clinical data for AlphaVac and NanoKnife were positive relative to established standards of care, suggesting potentially competitive offerings in the pulmonary embolism and prostate cancer markets if management can execute.
• Auryon, AlphaVac, and NanoKnife all offer double-digit growth potential, but sales execution against larger entrenched rivals is not going to be easy and the Med Device business offers limited potential.
• Shares have surged over 60%, yet further upside toward $20 remains if management can capitalize on Med Tech opportunities.

While acknowledging AngioDynamics' ( ANGO ) less-than-ideal track record and ongoing challenges in its slow-growing legacy operations, I’ve been bullish on the stock for the last year or so on the basis of better results in the growth-oriented Medical Tech segment and the opportunity for clinical read-outs to drive more value....

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