I am currently going through my Watch List to ensure that each company still deserves to be on the list. Because of the number of companies on my list, I am going to try to knock out 2 per weekday.
| Company name | ABIOMED, Inc. |
| Stock ticker | ABMD |
| Live stock price | [stckqut]ABMD[/stckqut] |
| P/E compared to competitors | Fair |
MANAGEMENT EXECUTION
| Employee productivity | Fair |
| Sales growth | Good |
| EPS growth | Good |
| P/E growth | Good |
| EBIT growth | Good |
ANALYSIS
| Confident Investor Rating | Good |
| Target stock price (TWCA growth scenario) | $39.71 |
| Target stock price (averages with growth) | $42.95 |
| Target stock price (averages with no growth) | $18.38 |
| Target stock price (manual assumptions) | $39.77 |
The following company description is from Google Finance: http://www.google.com/finance?q=abmd
ABIOMED, Inc. is a provider of mechanical circulatory support devices and offers a continuum of care to heart failure patients. The Company develops, manufactures and markets products that is designed to enable the heart to rest, heal and recover by improving blood flow and/or performing the pumping function of the heart. The Company’s products are used in the cardiac catheterization lab (cath lab) by interventional cardiologists and in the heart surgery suite by heart surgeons for patients who are in need of hemodynamic support prophylactically or emergently before, during or after angioplasty or heart surgery procedures. In September 2012, the Company announced that its Impella CP product received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for partial circulatory support for up to six hours.
Confident Investor comments: At this price and at this time, I think that a Confident Investor can confidently invest in ABIOMED, Inc.
If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor.
For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:
Stock price at the time of the calculation: $25.7
Growth: 0.2
Current EPS (TTM): $0.18
P/E: 143
Future EPS Calc: $0.44
Future Stock Price Calc: $64.04
Target stock price: $39.76
I hope that this makes you a better investor. [/s2If]