Powercell: Firm growth and healthy gross margins - Redeye
Redeye is still optimistic on Powercell’s prospects for the coming years following the Q3 report. With a firm business pipeline and customers gradually converting into more repetitive sales, we expect to see continued solid top-line growth. Moreover, very healthy gross margins (35-40% excl. royalties) and outsourced stack manufacturing (with Bosch) gives good leverage in Powercell’s expansion. However, our projections have probably been a bit too optimistic. With our revised forecasts and a slightly higher WACC, due to higher interest rates, our Base case fair value is now around SEK75 per share.
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