IART- the stock remains very cheap
While I can understand disappointment with managements handling of the Boston Factory issues, to knock the stock price down 66% is ludicrous IMO. Right now the stock has a PE of 8 going forward, which suggests there are underlying problems that will hurt future earnings badly. I however disagree, as both their latest acquisition, and other products have performed strongly, and demand is high according to the company. Right now if fact, eps of $3.06 is being guided for 2024, which is higher than the $3 guided for in 2021, when the stock was $76 I even heard the CFO say in the CC, that eventually they expect to manufacture two 2 products that were made in the Boston Factory, and that event will be a nice surprise when it happens.
In the meantime, all IARTs medical devices have strong demand, and growth is expected to be upper single digits for earnings going forward, which is in line with the other medical device companies ie Stryker. Bottom line is, the average medical device manufacturer has a mid 20s PE going forward, while IART has an 8 ! Lots of room in my view for price appreciation for IART.
