Valuation Insight
ANIKA THERAPEUTICS, INC. (ANIK)
February 21, 2023
Caligan believes, based on the strong regression, on a standalone basis (fully burdened by corporate costs and Cingal R&D), Anika’s OA pain management segment would be valued at ~5.8x 2023 revenue/14.2x 2023 EBITDA, which implies an EV of $580MM. For a potential acquirer that could easily eliminate Anika’s excessive corporate costs and decide the optimal path forward for Cingal, pro-forma EBITDA margins could be in the mid-50 percent range. Consistent with our earlier analysis, this implies that based on the existing, approved viscosupplement portfolio alone, Anika could be worth almost $60 per share, double the current share price.
February 8, 2024
Chef can significantly improve its share price to more than $85 over the next five years and produce adjusted EBITDA of more than $320 million in fiscal 2028 – all without squandering any further capital on questionable acquisitions. We believe this price target and level of profitability is possible by achieving a 7% adjusted EBITDA margin (compared to 5.7% in 2023 – guidance midpoint), limiting additional acquisitions and implementing a prudent capital spending program.
February 20, 2024
Ted Miller, co-founder of Crown Castle (CCI.N), and President of Boots Capital Management, stated that the company could sell its fiber assets for up to $15 billion if he and his partners joined its board. He estimated that his plan supports 2026 Ebitda that takes Crown Castle shares to $150 to $160.
January 8, 2024
Browning West opined that under Mr. Chamandy’s leadership, Gildan’s share price was poised to be worth $60 to $80 USD over the next two years, which represents an approximately 80% to 140% increase from the current price, which assumes that Mr. Chamandy delivers $4 of earnings per share and the stock re-rates to its historical valuation range.
September 12, 2023
If GoDaddy achieves 7% revenue growth and 28% Adjusted EBITDA margins in Q4 2023, it can aim for a 40% growth + profitability metric by end of 2024. Regardless of 2024's revenue growth, cost-cutting measures are advised. Generating 7-8% revenue growth in 2024 with 32-33% Adjusted EBITDA margins could mean over $1.5 billion in Adjusted EBITDA. GoDaddy's undervaluation at 11x 2023E FCF could significantly improve with these targets, reaching a pro forma multiple of about 7x, closer to peers.
January 31, 2024
Starboard stated that, "With successful execution and share repurchases, the company could achieve over $9.00 of free cash flow per share in FY2024, growing to approximately $14.00 per share by FY2026."
OCEAN POWER TECHNOLOGIES, INC. (OPTT)
January 4, 2024
Paragon believes OPT could be worth +$3 a share, or 10x return, with an improved operating cost structure, disciplined capital allocation, and a realigned focus on potential growth of Marine Advanced Robotics.
December 28, 2023
Galloway Capital Partners believes the Company is solidly profitable at $30MM EBITDA and off to a very good start. While management has done a very good job in cutting costs and converting to a franchise system, this is certainly not reflected in the stock price. They believe the Company’s stock is undervalued by 5-10x
SILVERBOW RESOURCES, INC. (SBOW)
March 13, 2024
Kimmeridge proposed to merge its Kimmeridge Texas Gas ("KTG") assets with SilverBow Resources. KTG's equity value stands at $1.1 billion, expected to reach $1.4 billion upon the transaction's close. Kimmeridge plans to contribute KTG assets in exchange for 32.4 million shares of SilverBow at $34 per share and inject $500 million of fresh equity at the same price, obtaining 14.7 million shares. This would result in Kimmeridge and its affiliates owning a majority of CombineCo's outstanding shares, totaling 50.3 million.