Q: Do you have any updated opinions about ARTG compared to your last comment? Thank you!
5i Research Answer:
Momentum has shifted a bit negative, but this has made the stock more attractive on valuation, at only 10x earnings now. The revenue ramp has occurred as expected, with $380M in sales in the Q1. With strong earnings this year, debt should be able to be reduced. The first quarter was not perfect and did miss estimates, but again we think this is more than reflected in valuation. Insiders remain highly committed with 35% ownership, with only tiny (net) selling in the past six months.