Moberg Pharma: Further improvement in 20172017-03-14 06:48, Edited at: 2017-03-14 06:48
The outcome in 4Q’16 was weaker than expected compared to our and consensus forecast. Distribution sales in Asia were the main reason for this and the expansion was slightly lower than we had expected in 2016. However, Asian sales represent only about 10% of total sales, which is why a slightly more conservative view of the growth potential going forward only has a limited negative impact on our estimates. In addition to the somewhat weaker 4Q’16 report, the CEO’s divestment of shares also contributed to pressure on the share price. We are not that concerned about this, since CEO Peter Wolpert continues to have a substantial shareholding in the company.
The share price have come down considerably since the 4Q’16 numbers were released. We view current price levels as attractive, but the lack of important catalysts in the coming months and insiders selling, we believe will restrain the stock from a swift recovery. Our base case fair value remains at SEK 74 (74).