Incap: Ordinary result was not enough for the markets - Nordea

Net sales and clean EBIT were in line with consensus but the share price declined by 7.5% on results day (26 July). Incap was unable to post a clear positive surprise because it had already upgraded full-year guidance on 18 July. We believe, however, there is still room for a clean EBIT guidance upgrade later in 2024. The destocking effect from the main customer has finally come to an end and other customers are growing well. Visibility has improved and there is no problem with profitability, although price pressure is always present in the EMS sector. Incap's 2024E EV/EBIT is 14% below the peer group median. Our fair value range is EUR 12.1-14.8 per share, based on a DCF analysis and backed by a peer group comparison. Marketing material commissioned by Incap.

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