Ovzon: Few order announcements, but still a solid Q3e - ABG

Few order announcements put some risk on Q3e sales...
...but sales should still improve in H2e
Share is now trading at 7x '25e EV/EBIT


Continued sequential improvements on the cards

Ovzon's Q3 report is due on 20 October. Given the order announcements in H1 (particularly the USD 4.8m order), combined with the Q2 revenue shortfall versus our forecast, we expect revenues to show continued sequential improvement for a total of SEK 88m vs. SEK 69m in Q2. However, we have seen few order announcements during Q3, which causes us to reduce our revenue estimate from SEK 102m. We continue to expect more order announcements in Q4, partly driven by seasonality, which bodes well for a good finish to the year. That said, we reiterate our view that the Ovzon-3 delay could have hurt some of the company's recent sales activities, although this should revert in 2024 as the satellite reaches orbit (current launch window guidance is Q4'23-Q1'24, with most capex already taken).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/ovzon/equity-research/2023/10/ovzon---few-order-announcements-but-still-a-solid-q3e/