IAR Systems: Fair value cut to SEK120–200 - DNB

Amid 1) a hiccup in its turnaround; 2) a shift in the investor base; and 3) low liquidity in the shares, IAR Systems’ share price is back at 2015 levels. We have educed our 2023–2024e EPS by 33–20% to factor in slower organic growth (with high drop-through). Although 2023 seems to be a difficult year, we appreciate the combination of profitable growth, being net cash positive, defensive elements from c40% recurring revenues, and optionality from its embedded security offering. We note insiders have accumulated shares above current share-price levels recently. We have lowered our fair value to SEK120–200 (140–250).

Länk till analysen i sin helhet: https://www.dnb.no/seg-fundamental/fundamentalweb/GetReportSpon.aspx?file=CMPSP_217914.pdf