Napatech: 2024 could be a catalyst year - ABG

Potential for transformative design wins in next 12 months
We forecast 40% revenue CAGR '24e-'26e
If successful: our different scenarios imply P/Es of 10x, 2.6x and 1.0x


Strong growth outlook for the coming years...

Napatech's traditional SmartNIC business has been hurt over the past two years by a soft server market, with revenue 27% below '20/'21 levels. We forecast a gradual recovery in this segment in '24e-'25e, with 16-17% annual growth p.a. in combination with: 1) a ramp-up of the F5 contract and 2) first meaningful revenue from the new IPU products. We expect this to drive a revenue CAGR of 40% from '24e to '26e.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Napatech/Equity-research/2024/2/napatech---2024-could-be-a-catalyst-year/