- 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.
For further details see:
GenMark: Early Stages Of Accelerated Growth, But Gross Margins, Valuation Balance The Investment Debate