Immunodiagnostic Systems (IDH) intends to be a leading solution provider across the broader immunoassay testing market. The current business in US and European markets forms a growing base whilst starting to penetrate new emerging testing markets, like Brazil and China.
The company has recruited a new but highly experienced management team. Priorities focus on re-building customer confidence to gain traction on analyser placements which is key to test/consumables throughput and delivering a new cycle of revenue growth.
Our analysis of IDH's 5-year plan suggests it looks achievable (+1,000 analysers placed, +80 auto assays launched, new market penetration achieved); however, the results are not a given and implementation must be aggressive.
We estimate 5YR CAGRs of 10% and 27% in revenues and PBT, respectively (FY14-'19). A DCF valuation matrix suggests a fair valuation range of £130m-£180m, versus current market cap of £86m.