🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Mirion Technologies gains on new buy rating

Published 09/26/2024, 12:32 PM
© Reuters
MIR
-

Investing.com -- Mirion Technologies shares gained over 3% on Thursday following a new Buy rating from B. Riley, with a price target of $14.

The firm said in a note to clients that Mirion’s strong position in the nuclear medicine and nuclear energy sectors predicts significant growth opportunities in both markets.

According to B. Riley, Mirion is "a market leader in industrial and medical applications related to radiation detection," with top rankings in 16 of 19 product categories.

Despite its dominance, the company has been "under-followed by investors since its SPAC merger in 2021" and remains undervalued, given its revenue of over $800 million and nearly $200 million in adjusted EBITDA.

B. Riley emphasized that Mirion is poised to benefit from global trends favoring nuclear energy and nuclear medicine.

The firm's analysts noted that an increase in the number of healthcare workers exposed to radiation due to the broader use of nuclear medicine will drive demand for the company’s products.

Additionally, nuclear energy's role in meeting clean energy goals and supporting energy-intensive sectors, such as AI computing centers, is expected to position Mirion for continued growth.

The firm also pointed out the favorable impact of a recent CMS update, which offers higher reimbursement rates for novel diagnostic radiopharmaceuticals.

This change could "further incentivize new nuclear medicine development," benefiting Mirion as a key player in the radiopharma value chain.

B. Riley expects Mirion’s top-line revenue to grow 5.7% year-over-year to $846.5 million in 2024, with adjusted EBITDA rising 11.7% to $201.9 million. They base their $14 price target on an 18.6x EV/EBITDA multiple, which aligns with industry peers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.