An acquisition and raised guidance have reinforced the bull case for the stock.
Fulgent was in the right place at the right time to respond to the need
for COVID-19 testing, and has used that unexpected revenue windfall to
strengthen its core business and position itself for continued success
long after COVID-19 is behind us. Yet, the market seems to be pricing
Fulgent shares based solely on the decreasing COVID testing revenues.
Currently, the company trades for only two times sales and four times free cash flow.
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