Replies to post #342722 on Avid Bioservices Inc (CDMO)

[stockaxe]

I'm confused by the negativity. Book to bill > 1, backlog keeps growing, and I expect backlog and revenue to grow much faster as new capacity comes online. The $30s will come, but the real value will be the $40s, $50s, and $60s. This is a compounder. I'd expect a new facility announcement at some point next year given the lead times for capacity to be operational. In a few years, this could be a company with $500-$700mm of revenue capacity with EBITDA margins in the mid 30s %. If you do any kind of reasonable multiple on that math, this stock will be in the mid $60s or higher. It is a tough economic environment out there, and Avid continues to grow and put up record backlog. People should stop anchoring themselves in what the stock used to trade at last November and focus on what it could reasonably be worth in a few years.