Embla Medical: Medicare news may be close - ABG

Q2 report due Tuesday, 23 July – many moving parts
Key factor looks to be possible imminent Medicare news
Updated fair value range DKK 26-38 (25-37)


Q2 report: Tuesday, 23 July

We look for Embla to report Q2 sales of USD 219m (+9% y-o-y) on 6% organic growth, with a 61.8% gross margin (-70bp y/y) and 7% opex growth leading to EBITDA pre-items of USD 41.6m for a 19.0% margin. Embla delivered 7% organic growth in Q1 despite negative Easter effects, weakness in the US and Australia and an underperforming Bionics business. This along with a positive working day effect should set up a sequential improvement into Q2, although we note some potential for continued demand weakness in the US due to ongoing Change Healthcare cyberattack issues. We expect Embla to comment favourably about feedback from the recent Leipzig trade fair a well as its product launches (e.g. the NAVI and Icon knees).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/embla_medical/Equity-research/2024/6/embla-medical---medicare-news-may-be-close/