Research

VAR – Market expectations are for Uniform ROA expansion, and management is confident about their acquisitions, growth, and long-term outlook

  • Varian Medical Systems, Inc. (VAR:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 21.6x Uniform P/E. At these levels, the market is pricing in bullish expectations for the firm. Additionally, management is confident about their acquisitions, growth, and their long-term outlook
  • Specifically, management is confident they have booked four initial orders in India under the Tata Trusts framework and that their CTSI acquisition will help the firm better address and develop treatments. Furthermore, they are confident Noona will reach close to 60,000 new cancer cases per year once fully deployed, and they are confident about their long-term performance in the Americas. Finally, they are confident patients are moving to higher tech health solutions and that they are confident their recent acquisitions will drive higher revenues.