Avid Bioservices Inc (CDMO)

[stockaxe]

I don't know exactly what they have in mind for the stock (and to some degree at least short term moves are out of their control), but if the industry strength continues it isn't hard to imagine the company adding ~$100mm or more of revenue capacity every 12-18 months. Said differently, I wouldn't be shocked to hear about another expansion in late 2022 (beyond what I expect will be adjacent technologies by the end of this year). That late 2022 expansion would come online probably in mid 2024. Rinse and repeat. The industry is so strong that you could see them doing this. At some point of course it seems logical that a larger player would pay them a very big multiple and build the growth themselves. Rough math though, if this gets to $400mm of revenue capacity by the end of 2024, you could see a business doing $140-$150mm of EBITDA. That's a $50+ stock, in my opinion.