- Varian Medical Systems has key drivers in the growth engine that will continue to generate torque to the flywheel.
- The Siemens transaction highlights the company's standing as a leading authority in stereotactic surgery and radiation-type therapy, with a $16.4 billion dollar valuation.
- Varian will be a major beneficiary to the transaction, where operating leverage and key efficiencies will be realised via supplier dynamics.
- We see positive benefits to Varian's operating cycle via increased inventory/capital placement turnover, and free cash conversion.
- Varian also has "strategic enablers" in place, that include integration of AI and cloud-based technology, which align with the current narrative in service delivery.
For further details see:
Varian Medical Systems: Key Upside Factors To The Siemens Transaction