Invisio: Waiting for the new products

Research Update

2017-05-03

22:40

This is an English version of our Invisio update of May 3. EBIT fell by approximately SEK 1m to SEK 23m (expected 21) after investment in growth expanded the number of full-time employees by 11 to 63, compared to Q4 2016. Book to bill rolling 12 months is now back above 1.0 following the major new UK contract worth SEK 105m. This deal also gives an indication of wear rates, and implies a relatively short service life given the option for a potential upgrade of the entire installed base just 2.5 years into the contract. We are retaining our estimates and valuation, indicating a base case of SEK 72 per share and a fair value range of SEK 28-90 (see our valuation assumptions below). As before, we see a large upside risk in our estimates based on the modernisation programmes, about which we have limited knowledge.

VW

Viktor Westman

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