On Wednesday, Euroland initiated coverage of Memscap shares with a "buy" recommendation and a price target of 4.15 euros, highlighting in particular the "broad and innovative" offer proposed by the specialist in electro-mechanical systems (MEMS).
In a note published this morning, Euroland considers that the French leader in MEMS has "first-rate" industrial facilities and "substantial" production capacities, which should enable it to successfully implement its strategic plan.
The brokerage firm says it expects sales to grow at an average annual rate of 26.2% from 2022 to 2025.
"At the current price, Memscap is paying 4.7x ROC 2023e vs. 10.5x on average for its comparables", adds Euroland.
"Such a discount is not justified for this player, which should combine sustained organic growth with high profitability", continues the Paris-based company.
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Memscap is the leader in designing, manufacturing and marketing components, modules, systems and solutions based on micro electro-mechanical systems (MEMS). MEMS combine semiconductor micro-electronics with micro-manufacturing technology to make entire systems contained on one chip. Net sales (excluding sold businesses) break down by area of activity as follows:
- avionics and medical (88%): design and manufacture of multifunctional sensors and measurement systems for aeronautics and medical sectors;
- optical communications (11.1%): design and marketing of variable optical attenuators (VOAs) for the communications market, based on a fabless organization;
- dermocosmetics (0.9%): operation and management of the Group's assets in the dermatology and cosmetology sectors, primarily the Ioma brand.
Net sales are distributed geographically as follows: Europe (52.9%), the United States (38.5%), Asia (7.8%) and other (0.8%).
MEMSCAP 
