According to Pareto, the company sells a 55 percent discount by comparing the profits of similar Swedish medical technology companies based on estimates for the 2019 media. For sales multiples, the discount is up to 79%.
An attractive business model coupled with lower prices will make Boule Diagnostics' profit more profitable. It writes in the Pareto Securities analysis and starts monitoring when the purchase recommendation and the target price are SEK 79.
Pareto invites the Boules Business Model to a classic "razor razor" where customers commit to the Boule system using only Boules' own need.
As instruments are sold at a lower margin than consumables, which are also bought more often, Paretao believes that the ebit margin is likely to increase from the current 13 percent to 19 percent in 2022, far exceeding the 15 percent margin for the company's own financial target.
At the beginning of October, Boule Medical, a subsidiary of Boule Medical, received a warning from the US health agency at FDA. The background was the routine inspection of the Swedish Boules instruments in May 2018, when Boule received "observations" from the FDA. The warnings were not sufficient.
"However, we are not too concerned because warning signs are relatively common in the pharmaceutical industry, especially in companies with business in the United States," says Pareto, saying that after the FDA's warning, a price drop of around 40% is excessive and offers a good opportunity to buy from stock.
According to Pareto, Boule gets a 55 percent discount by comparing the profit multiples of similar Swedish medical technology companies based on the median estimates of 2019. With multiple sales, a discount of up to 79 percent.
On Tuesday, at 14 o'clock, trading was SEK 62, up 4.6 percent on Monday 19 March. So far, this year's share has fallen slightly over 5 percent.