Themes:
GARP - Recent quarter marks serious growth inflection point - Right-sized marketing team - Operating leverage - Targeting higher margin geography - Emphasis on company culture
Elevator Pitch (Excerpt)
We see no reason that a medical device company that is growing nicely, should not trade well in excess of a 25x P/E. From an enterprise value to sales multiple perspective, our experience tells us that we could see share trade in an EV/S range of 4x to 6x, compared to the current EV/S ratio of 1.7x. For now, we’re going to use a P/E ratio to value the company, and based on our assumptions, we think the company can reach $6.00 in a relatively short period of time, implying the stock could increase around 200%.
