Analyst Note| Debbie S. Wang |
While narrow-moat Advanced Medical Solutions has not yet released full-year financial statements, we would not be surprised to see further disruption for the firm’s sales and inventory management, as the full effects of Brexit have begun to take effect. We’re leaving our fair value estimate unchanged for now. Much of AMS’s branded and non-branded product portfolio, which is typically used in surgical procedures and post-surgical recovery, was already under pressure as COVID-19 has damped the usual volume of non-pandemic surgeries, exacerbated by the series of lockdowns in the U.K. Even though the “will we or won’t we leave” uncertainty around Brexit has been settled, now firms actually have to grapple with the new logistical and process-oriented complexities of with exporting U.K. goods to the European continent.