Sidoti Initiates Coverage on Growth-Machine INFU

Posted on December 30, 2020 by Aaron Warwick

InfuSystem (INFU), a national healthcare service provider, has been on a tear in 2020, up over 120% YTD, and over 260% since its Covid-selloff low. Yesterday, Sidoti & Company, LLC, initiated coverage of INFU with a buy rating and $26 price target. INFU began 2020 with zero analyst coverage. They have now ended the year with coverage from three firms and an average price target of $25.67. That price target represents about 35% upside from current prices.

The clear theme of all three analyst reports is that INFU is no longer a turnaround story or value play. Rather, it is a fast-growing company, leveraging its strong infrastructure into increased margins. In addition to opportunities to penetrate its current markets through its integrated therapy services (ITS) division, INFU will likely win new indications in ITS, allowing the growth to propel in multiple directions. As INFU demonstrated in its most recent quarterly report, any time they choose to slow the growth machine, they will become a pure cash cow. So, with the stock already at all-time highs, analysts believe the stock has still further to run based on this impressive growth story.

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