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MYCR

Mycronic

Initiating coverage

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Mycronic: Next chapter in the growth chronicle

Mycronic is the global market leader within niche segments in both of its business areas in electronics manufacturing equipment. The Company’s new strategic approach has recently resulted in several new attractive products and therefore an even stronger positioning. Now, Mycronic is poised to benefit from market trends moving in favour of Mycronic, making the share interesting from an investment perspective.

Our DCF valuation of Mycronic indicates a value in base case of SEK 63 and an upside of about 30 percent from today’s levels. The scenario analysis with our bear and bull case of SEK 26 and SEK 80 respectively implies decent risk/reward. We expect the large, yet growing cash assets to be enough for an acquisition and an extra dividend as well. Other catalysts for the share consists of PG orders and the general economy.

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