Analyst Note| Debbie S. Wang |
Narrow-moat Idexx delivered a breath-taking quarter that exceeded our expectations, and we’ve moderately raised our fair value estimate to $301 per share after incorporating more robust projections for 2021. Nonetheless, with shares hovering around $525, we still think the stock is in nosebleed territory. Though Idexx consistently posts strong double-digit revenue growth, the companion animal segment knocked it out of the ballpark with quarterly growth of 23% in constant currency compared with the prior-year period. Further, we note that the first quarter of 2020 saw somewhat softer demand, but by no means was it a particularly weak comparison, nor did sales slip into decline.