Buy Signal on Ambu (AMBU)
Ambu is a DKK 43.2Bn market cap, and focused on 1/ emergency care and devices (35% of sales) including artificial ventilation devices (insufflators, laryngeal masks, face masks and respiratory bags), mucus aspirators, immobilization devices, etc. 2/ monitoring and diagnostic devices (33% of sales) primarily electrodes used in the fields of cardiology, neurophysiology and primary care and 3/ disposable endoscopes (32%). The geographic breakdown of sales is Europe (42%), North America (45%) and others (13.4%).
Ambu is one of the fastest growing medical device company, as the outbreak has accelerated the development of single-use endoscopy market, an attractive solution for evaluating contamination levels. Q3-2020 revenue grew by 21% yoy led by visualization (+81%). The EBIT margin is expected to reach 12% in 2020 coupled with a +25% revenue growth.
Short term catalyst: Single-use endoscopy market.
This signal looks consistent with the European Medtech sector which is in Major Bullish Trend.