Sivers IMA: Yet Another Fortune 100 Order
Redeye Research Note 2020/06/12
Sivers IMA has recevied yet another order of SEK 21m from its first Fortune 100 customer. All these orders in total sum up to about SEK 70m.
The order is related to optical sensing and provides more evidence of quality and progress. Redeye thinks the order could be related to optical sensing applications mentioned in previous company presentations, which would suggest major volumes. Moreover, the press release mentions several different projects, although the company does not want to comment on the exact number of projects.
The order will be billed during 2020. Q1’20 sales extrapolated amount to SEK 90m. We expect sales of SEK 105m for full-year 2020, with the Corona uncertainty as a swinging factor. At the moment, we choose to not make any estimate changes, but we recognize that our estimates could prove very conservative.
We reiterate our base case of SEK 11 per share, following two upward revisions in a row since March 30. However, shares barely moved on the news (+2%). Our experience is that the stock market often has a name fixation, and needs a customer name, as opposed to an anonymous “Fortune 100 customer. When the name is eventually announced, we think there could be a major positive stock reaction. In addition, we expect several other news, during the remainder of 2020, to potentially move the stock.