Invisio: Large market with structural tailwind

Research Update

2017-08-23

17:43

This is an English version of our Invisio Q2 update of August 23. EBIT fell by SEK 8m to SEK 14m (expected 18) due to shipment of third-party products and continued investment in growth (mainly staff). The most interesting aspect of the report was Invisio’s own assessment that it expects the total addressable annual market to average SEK 5bn, which supports our belief that Invisio controls a niche segment that is larger than it first appears. We also assume structural growth due to e.g. radio penetration. We have raised our long-term sales estimates and our fair value range to SEK 34-127 (28-90) as we appear to have underestimated the strength of the structural growth trend while overestimating the commercial life of the products. However, we see potential short-term risks in a weak Q3 report, insufficient information about new products and a lack of TCAPS orders until the budget is set.

VW

Viktor Westman

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