Investment Research report

Heska Corp.

Previous Item
All Reports
Heska Corp.
Scoop This Poop From Your Portfolio
Download Report

Research Overview

S&P 500
Oct 25, 2021

After conducting a forensic financial and accounting review, Spruce Point believes Heska Corp (Nasdaq: HSKA), a distributor of diagnostic equipment and related consumables to veterinarians and a supplier of various animal health test kits, preventatives, and pharmaceuticals, has not seen significant improvement in its business, capabilities, and competitive position despite benefitting handsomely from the market’s embrace of the animal health investment theme. Based on our investigation, we estimate 50% to 60% downside risk, or $90 – $115 per share.

The report highlights several key concerns with the company, including:

  • Evidence of management materially embellishing market share, business model, and R&D capabilities while failing to disclose increasing risks to challenged competitive positioning
  • Our analysis of recent acquisitions reveals a pattern of acquiring low-quality assets in an apparent effort to create the perception of an expanded product offering on par with the sector’s leaders
  • We have identified numerous examples of incorrect, inconsistent, or inadequate financial disclosures as well as numerous governance failures and potential conflicts of interest
Downloads & More

Research Assets & Releases

Join The Mailing List

Spruce Point Alerts & Updates

See the other side of the Wall Street hype machine.