AngioDynamics (ANGO) Hits 52-Week High on Positive View - Analyst Blog

Shares of AngioDynamics Inc (ANGO) reached a 52-week high of $19.20 on Dec 17, 2014. The bullish run reflects positive long-term outlook, expanding product portfolio, innovative pipeline and improving operating efficiency.  

The closing price of AngioDynamics on Dec 17 was $19.18, representing a strong one-year return of about 20.4%. The S&P 500 jumped 11.2% during the same period.

AngioDynamics reported an impressive first quarter of 2015, wherein both earnings and revenues beat the Zacks Consensus Estimate. On an average, the company has outperformed the Zacks Consensus Estimate by 102.5% over the last four quarters. The company also provided a positive outlook for the second quarter and fiscal 2015.

This Zacks Rank #3 (Hold) stock has a market cap of $658.49 million and a long-term expected earnings growth rate of 15%.

Key Growth Catalysts

We believe that AngioDynamics' expanding product portfolio that includes AngioVac, Bioflo and Celerity significantly enhances its market opportunities. The strong product line helps the company in offering solutions to patients suffering from venous Thromboembolism (approximately 1 million events per year in the US) and varicose vein problem (approximately $80 million sales by 2020).

Celerity is significantly cost effective in finding tip location as compared to other prevalent competitive solutions. Nanoknife is expected to improve AngioDynamics' competitive position in the tissue ablation solution market, going forward.

Improving operating efficiency through consolidation of the N.Y. distribution center and ERP implementation is expected to result in almost $15 to $18 million in cost savings, which will help AngioDynamics reach the gross margin target.

AngioDynamics expects sales to increase 10% to reach $600 million by fiscal 2020. Segment-wise, by fiscal 2020, Peripheral Vascular sales are forecasted to reach approximately $300 million, Vascular Access sales $200 million and Oncology/Surgery $100 million in sales.

Moreover, we believe international expansion and accretive acquisitions will boost AngioDynamics' competitive position against the likes of Boston Scientific (BSX), C.R. Bard (BCR) and Merit Medical Systems (MMSI) going forward.

Estimate Revisions

The Zacks Consensus Estimate for fiscal 2014 remained steady at 69 cents per share over the last 7 days. Similarly, for fiscal 2015, the Zacks Consensus Estimate remained unchanged at 86 cents per share over the same time frame.

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