InVivo Therapeutics Holdings Corp (NVIVQ)

[sons4]

Zacks revenue projections for NVIV are...

$89M in 2014
$203M in 2015
$426M in 2016
$676M in 2017
$1.28B in 2018

at 90% gross margins. Compare this to MAKO or ISRG at a similar stage. MAKO's revenues were $66M in 2011 at 66% gross margins and grew 50% y/y. MAKO is trading at a 1.6B market cap.

"If" Zacks is correct... NVIV will be growing 100%+ y/y with much higher margins. If NVIV does $89M in 2014, their market cap should be > $2B which would put the stock price @ $30+.

In 2008 ISRG's revenues were $875M growing 45% y/y with 70% gross margins. Their stock was trading at $323 on Dec 30,2008. With 40M shares outstanding (a guess) that put their market cap at the end of 2008 at $12.9B

ISRG did $1.7B in revenue in 2011 with 72% margins. ISRG's current market cap is $20.5B

If NVIV revenues are $1.2B in 2018 with higher margins, what will their market cap be? If it's valued like ISRG (and it should be if not more) then the market cap will be $15B+.

Zack's claims their projections are conservative so who know's what the real numbers will be. I would be happy if the numbers were 1/2 of their projections. In any case I'm sticking around to find out.

http://www.zacks.com/stock/news/57851/Initiating+Coverage+of+InVivo+Therapeutics?print=print