News Column

Redeye - Reasonably priced growth in Hexatronic

July 7, 2014



Hexatronic reported revenue levels that exceeded our expectations but fell a bit short on the margin levels. Still the company reported an EBITDA of 19 MSEK, 8% above our forecast. Our full year turnover estimate is adjusted upwards but we keep the Q4 forecast intact. We find it likely that the Q4 will be the weakest of the four quarters, because of seasonality effects. In our long-term forecasts profitability levels and growth rates are unchanged. The underlying market for fiber infrastructure continues to be strong.

Our fair value estimate per share is adjusted upwards to 21.1 (20.3). Since our last update the share price has performed exceptionally well, with an appreciation of 26%. We do believe that we only have seen the start of a long growth story for this company. We find that Hexatronic is a profitable growth company at a reasonable price.

To read the full report visit http://www.redeye.se/



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Source: Cision


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