Incap: Confident about its full-year guidance - Nordea

Incap is relatively confident about its full-year net sales development, despite inventory destocking by its main customer. The company also expects to defend profitability through personnel reductions. We argue that risks related to H2 2023 are lower following the Q2 earnings release. Customers (aside from its largest) were growing 15-20% y/y in Q2 and there is a possibility that the destocking effect will end in Q1 2024. Incap's EV/EBIT valuation for 2023-24E is now ~18% below its peer group, even though it has a clearly higher return on invested capital. Our unchanged fair value range of EUR 13.5-16.5 per share is based on a DCF analysis and backed by a peer group comparison. Marketing material commissioned by Incap.

Länk till analysen i sin helhet: https://research.nordea.com/api/reportfileapi?id=861219