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Profit from a medical technology winner

A play on a big growth theme, shares in this fully integrated medical technology company look too cheap.
October 27, 2020

 

  • This firm is strongly positioned, with a growing global market for its medical technology products.
  • Potential upside from new product launches and conservative earnings forecasts.
  • Shares look too lowly rated on cash-adjusted forward price-to-earnings ratio of 14.

 

In the last seven years this business has transformed from a medical device distributor to a fully integrated medical technology company. It's core neonatal care market is worth $6bn and is set to grow by fifty per cent within five years. The backdrop offers a supportive market environment for medical device companies which provide vital equipment. 

This company now sells its own branded products in over 75 countries. Furthermore, two acquisitions in the past 12 months have created an enlarged medical technology business that is incredibly well placed to benefit from the strong organic growth trends. 

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