Formpipe: Unchanged case, movement in shareholder base

Research Update

2016-04-20

12:11

Formpipe's Q1 result was in line with our estimates, with revenue at 87.3 mSEK, we expected 87.8. EBIT at 3.2% was however below our expected 4.1%. Our view on the case remains unchanged, Formpipe is a stable growth case with good cash flow and recurring revenues. Key challenges remain margin improvement in Denmark and lack of traction for the new Life Science team - we however see the latter as an “option” not truly priced into the share. It was interesting to see that during Q1'16, several bigger owners increased their holdings in the firm. We haven't made changes to our Redeye Rating. Our fair value range remains almost unchanged, at 5.3 (bear) to 16.3 (bull) SEK per share, with a base case valuation at 9.4 SEK per share. Read our research report and/or visit the company's subsite on the Redeye Universe (login required) to see the full picture.

AS

Alexander Sattelmaier

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