Mirion Technologies Soars with New Buy Rating

Mirion Technologies saw its shares increase by over 3% on Thursday after receiving a new Buy rating from B. Riley, which set a price target of $14.

In a note to clients, B. Riley highlighted Mirion’s strong position within the nuclear medicine and nuclear energy sectors, indicating significant growth prospects in both areas.

The firm described Mirion as a “market leader in industrial and medical applications related to radiation detection,” with top rankings in 16 out of 19 product categories.

Despite this leadership, the company has been “under-followed by investors since its SPAC merger in 2021,” and is considered undervalued, especially given its revenue surpassing $800 million and nearly $200 million in adjusted EBITDA.

B. Riley noted that Mirion stands to benefit from global trends that support the expansion of nuclear energy and nuclear medicine.

Analysts pointed out that the increasing number of healthcare workers exposed to radiation, due to the rising use of nuclear medicine, will boost demand for Mirion’s products.

Moreover, the company is expected to thrive as nuclear energy plays a crucial role in achieving clean energy objectives and supporting energy-demanding sectors like AI computing centers.

Additionally, a recent update from CMS, which increases reimbursement rates for novel diagnostic radiopharmaceuticals, could positively impact Mirion, incentivizing the development of new nuclear medicine solutions and benefiting the company as a significant entity in the radiopharmaceutical value chain.

B. Riley forecasts that Mirion’s top-line revenue will grow by 5.7% year-over-year to $846.5 million in 2024, with adjusted EBITDA rising by 11.7% to $201.9 million. The firm’s $14 price target is based on an 18.6x EV/EBITDA multiple, consistent with industry peers.