GREY:CVHIF - Post by User
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WTtran08on Mar 21, 2016 6:22pm
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Good coverage from Mackie Research
Good coverage from Mackie Research International Corp () continues to be an undervalued play on demand growth for substance abuse treatment in the US, according to Mackie Research Capital.
Having given a new investor presentation from Convalo the once-over, Mackie said it does not plan to make material changes to its estimates, as it reiterated its 'buy' recommendation and 90 cent 12-month target price.
“CXV is working towards an exit revenue run rate of $80 million, which assumes the development and ramp-up of five pods. Each pod includes a detox facility, an intensive outpatient centre and lab capacity/support. The CAPEX required to develop a de novo pod is very modest (approx. $1 million), so the company has ample balance sheet capacity to finance its plan internally,” Mackie said.