- Accuray's fiscal third quarter was a little better than expected, but the lack of strong order momentum and/or upgraded guidance from management has tempered investor enthusiasm.
- The China opportunity remains large, and Accuray is well-positioned with its strong track record of winning Type A licenses and its partnership with CIRC, but it will take time.
- Management has developed and released several technological advances to the basic systems, improving utility and price/performance, and a greater move toward hypofractionation should help adoption.
- Accuray shares should trade closer to $6-$7 today, but could trade in the double digits if management can execute on opportunities in China, the U.S., and Japan over the next two years.
For further details see:
More 'Hurry Up And Wait' For Accuray, But The China Opportunity Is Coming Through