$OM To reach the $54, and above, price targets the analysts are assuming a 76%+ CAGR on revenue for the next 5 years, assigning a 12.5x revenue multiple to the 2023 revenue target, and assuming that the company will shift from have -40% gross margins to +20 gross margins by 2025. It took NxStage 6 years to have positive gross margins and 8 years to hit $200M in revenue - with a mix of home and in-center sales. Therefore, for the analyst stock price estimate to make sense, $OM will need to halve the time it took $NXST to do the same thing, back when they were the new kid on the block. I like $OM as a business - it just seems like they are priced for perfection, which never ends well.
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