The modernisation of IAR Systems continues in full force. Having laid off 11% of its employees, launched its new integrated safety, security, and compliance solution in Q2, and planned broader SaaS transformation. With a leaner cost structure into 2024e, we believe operating leverage could surprise on the upside. Given its net cash position (8% of its market cap) and decade-low valuation multiples, we see potential for it to utilise its share buyback mandate. We have raised our 2023-2024e adj. EBIT by 10-7%, and in turn our fair value to
Solid Q2 against low expectations. Q2 organic sales growth was -4% YOY (APAC and deferred revenues up 14% and 23% YOY, respectively, offset by declines of 13% in
2023-2024e net sales and adj. EBIT raised by 2-3% and 10-7%, respectively, mainly driven by positive FX and the Q2 beat, while also adjusting our organic growth assumptions. IAR Systems now targets
Fair value raised to
Best regards
Email: joachim.gunell@dnb.se
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https://news.cision.com/iar-systems-group-ab/r/dnb-markets---iar-systems--potential-for-share-buy-backs,c3819503
https://mb.cision.com/Main/1072/3819503/2234947.pdf
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