Needham Reaffirms Their Hold Rating on Cantel Medical Corp (CMD)


In a report released today, Michael Matson from Needham maintained a Hold rating on Cantel Medical Corp (CMD). The company’s shares opened today at $89.63.

Matson commented:

“CMD’s F1Q19 revenue missed while EPS beat consensus. Overall organic revenue growth slowed to 4.3% CC in F1Q19 from 7.5% CC in F4Q18. Organic Medical growth improved from F4Q18 as capital sales growth normalized. Adjusted gross margin was down 90 bps Y/Y and adjusted operating margin was down 190 bps Y/Y due to reinvestment. Management maintained its FY19 revenue and adjusted EPS guidance. Dental declines are disappointing, we believe that they are temporary and we are encouraged by the strong Medical growth. However, with CMD shares trading at a 2019E P/E of 33.5x or a 14% premium to small/mid-cap GARP peers trading at a median of 29.4x, we maintain our Hold rating.”

According to TipRanks.com, Matson is a 5-star analyst with an average return of 11.2% and a 63.2% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Cantel Medical Corp with a $117.50 average price target.

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Cantel Medical Corp’s market cap is currently $3.77B and has a P/E ratio of 41.41. The company has a Price to Book ratio of 6.19.

Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock.

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Cantel Medical Corp. engages in the development and manufacture of infection prevention products and services in the healthcare market. It operates through the following business segments: Endoscopy; Water Purification and Filtration; Healthcare Disposables; and Dialysis. The Endoscopy segment includes endoscope reprocessing and endoscopy procedure products.

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