AVTECH: With eyes on Lufthansa

Research Update

2017-10-26

07:43

The Q3-result was in line with our estimates with an EBIT of SEK -0.8 million versus our expectations of SEK -0.6 million. Revenue was SEK 2.7 million. One of the most likely potential catalyst will be a signed contract with one of Lufthansa Groups other subsidiaries. Lufthansa and perhaps EasyJet will be expanding their fleets when they take over Air Berlin which is good news for AVTECH. We have increased our sustained EBIT-margin to 16 percent (prior 14 percent) due to our strengthened faith in AVTECH’s long term competitive advantage. Our DCF indicates a value range of SEK 2-11 with a new base case of SEK 4.9 (prior SEK 4.5).

TO

Tomas Otterbeck

Disclosures and disclaimers

Premium Plan required to unlock

Unlock companies to access

more high quality research.