LVGO

Livongo Health Inc

Healthcare


Presented:05/06/2020
Price:$46.96
Cap:$4.56B
Current Price:$139.77
Cap:$14.20B

Presented

Date05/06/2020
Price$46.96
Market Cap$4.56B
Ent Value$1.97B
P/E RatioN/A
Book Value$5.32
Div Yield0%
Shares O/S97.15M
Ave Daily Vol2,392,796
Short Int5.71%

Current

Price$139.77
Market Cap$14.20B
Livongo Health, Inc. engages in the development and operation of consumer digital health platform. It offers Livongo for Diabetes, Livongo for Hypertension, Livongo for Prediabetes and Weight Management, and Livongo for Behavioral Health by myStrength. The company was founded by Kimon Angelides and Glen E. Tullman on October 16, 2008 and is headquartered in Mountain View, CA.

Publicly traded companies mentioned herein: Alphabet Inc (GOOGL), Cigna Corp (CI), Livongo Health Inc (LVGO), Sanofi (SNY, SAN FP)

Highlights

The presenter is short shares of Livongo Health Inc (LVGO), the California-based medical device company best known for its at-home diabetes management solution. LVGO’s stock price has doubled since the outbreak of COVID-19 to ~$50 per share (~$5B EV). While the presenter expects the company to have a strong year due to the pandemic, he thinks the market is getting carried away with the near-term benefit. More importantly, he anticipates LVGO materially missing Street estimates in 2021 – 2022 on the back of the market’s current misunderstanding of LVGO’s diabetes product, increasing competition, and a TAM significantly smaller than management portrays. His DCF model yields a price target of ~$20 per share.

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Idea Discussion

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