Key points from this report:
- Add to positions. The stock is on the right side of a stage-two base with good overall volume trends: A/D Rating A- and Up/Down Volume ratio of 1.7.
- Positive news: On April 1, the FDA announced that it is investigating numerous medical device reports (MDRs) describing patient infections and other possible contamination issues associated with reprocessing urological endoscopes. This is positive for Ambu’s single-use endoscopies.
- $2.5B global market opportunity: Ambu estimates that the single-use endoscopy market will reach $2.5B by 2024 from $500M in 2020. The company aims to sell 1.3M–1.4M (+24% y/y) units of single-use endoscopes in FY21 (consensus: 1.36M), driven by pulmonary, ENT, urology, and GI businesses. In Q1 FY21, the company sold 370K (+106% y/y) units of endoscopes.