In this equity research report, analysts Marcus Löfstedt and Linnéa Persson take a closer look at Medistim, a market leader in producing and distributing world-class devices that measure blood flow during cardiac and vascular surgery. The analysts believe that the market fails to realize how much the expansion in the U.S will drive revenue and the immense opportunity Medistim has for future margin expansions. With a DCF equally weighted with a peer valuation using a target multiple of 37x P/E 2024E, a target price of NOK 320.9 is justified, implying an upside of 22.5%. Investments highlights
Investments highlights
- A lucrative US market will drive topline growth at a revenue CAGR of 13.6% between 2023 and 2027E
- Margin expansion ahead because of improved product mix
- Well-established moats will maintain its historical ROIC of 25-30%