AngioDynamics - Undervalued Gem In Med Tech: Analyst Eyes Stellar Growth With A 'Buy' Stance

H.C. Wainwright initiated coverage on AngioDynamics Inc ANGO, noting that the company is debt-free and significantly undervalued compared to peers in a growing market.

AngioDynamics currently generates over 80% of its revenue from the U.S. and the rest from international markets. The analyst notes substantial room for further growth given the company's focus on the high-growth Med Tech segment with differentiated products. 

Analysts Yi Chen and Raghuram Selvaraju have initiated the coverage with a Buy rating and a price target of $19 and say the current valuation offers an attractive opportunity for investors in the medical device sector.

The analysts say the company's Med Tech segment could continue to grow at an annual rate of around 20% in the coming years.

In June, AngioDynamics divested its Dialysis product portfolio and BioSentry Tract Sealant System Biopsy product to Merit Medical Systems Inc MMSI for $100 million in cash.

The management plans to focus on the high-growth Med Tech platforms, including NanoKnife, Mechanical Thrombectomy, and Auryon businesses. The company may divest additional products to boost growth in the Med Tech segment, the analysts write.

The Med Tech sales could overtake Med Device revenue in approximately five years, and the company may become sustainably profitable within this time frame, and the ANGO shares could trend higher toward the industry average.

Price Action: ANGO shares are up 4.63% at $7.34 on the last check Monday.