Abiomed Q3 update

I know Saul held up to and exited this stock a year or so ago at the $110, mark but I and I believe a few others held on with the hope for continued 30%+ growth with a keen eye on the St Jude trial data release due end of '16 beginning of '17. St Jude have had their own issues and whilst I top sliced at $130+, I continued to risk holding given the known issues hoping it might buy some time and competitive advantage for Abiomed.

I guess it is cutting it pretty fine now but Abiomed produced the goods in the latest Q and have re-affirmed full year guidance (the Street had been hoping for a raise I assume given the immediate 2% drop after hours). I hope to understand more from the conf call today.




I like this company and its products. International growth is good and Japan has recently been approved. However, to me the stock is not a good value at current prices. Priced for perfection? Therefore I was a recent seller of the stock.

1 Like

Same here. Given ABMD commands high valuation, the street was looking for guidance raise. I like the company, so will wait to see if it gets to fair value territory.


What are you considering “fair value territory”?

If my memory serves me right, EPS’s around $1.25/share, and that’s PE of 100 while revenue growth slowed down from 40% to 35% range. (They announced 34% top line growth today so the guidance stays intact)

I understand ABMD’s been enjoying high valuation, since their growth was around 45% last year and high hopes with enormous addressable market. Will have better picture after the presentation tomorrow.

My ABMD trades might have not been consistent with this board but I sense ABMD’s recent price actions can be summarized by this: The price tanks around ER and then slowly rebounds in hopes of high growth and then tanks again because the expectation, as evidently shown in its valuation, is too high. I will take a closer look when it’s PE’s around 80, or the growth picks up.