GEO Investing

Today’s analyst estimates for ZYXI of $20.47 (Sentieo) are more than 185% higher than ZYXI’s current price of $7.00, a price that we think might represent a “coming back down to earth” scenario, where valuation should be reassessed, even in light of a new February 17, 2022 report by Night Market Research on the company titled, “Zynex: UnitedHealthcare Terminating Contract – An Undisclosed Loss That Accounts For 50%+ EBITDA.”

Night Market Research thinks that guidance will need to be dropped, but is this really the case? Will the UnitedHealthcare Network want to get back money for which they were supposedly overbilled, or will they have already lost their leverage and window of opportunity, being that they were originally part of Zynex’s network? Will the new acquisition dilute shareholders since more than half of it was stock-based, and how accretive will it be? How will this affect estimates?