In this financial analysis report, analysts Philip Höglund and Caroline Danielsson take a closer look at ContextVision, the world-leading medical imaging company and the sole independent image analysis and enhancement software supplier. Following a spin-off of the Company’s cost burden division within digital pathology last year, thus the Analysts believe that the market seems to miss ContextVision’s highly profitable core business in medical imaging. Based on a DCF valuation, further supported by a peer analysis, a target price of NOK 11.7 is motivated, implying an upside of 39.1%.
Investment highlights:
- Margin expansion ahead as a result of the spin off and core business being more profitable
- Capitalizing on secular trends and investing in untapped market segments will drive a revenue CAGR of 8.1% until 2026E
- Increased demand following COVID-recovery will drive innovation and expansion