Memscap shares rose sharply on the Paris Bourse on Wednesday, buoyed by a note from Euroland, which highlighted the "broad and innovative" offering of the MEMS specialist.
Around 12:30 pm, the share price climbed 8.5%, one of the biggest gains on the Paris market.
In a note published in the morning, Euroland considers that the French MEMS leader has "first-rate" industrial facilities and "substantial" production capacities, which should enable it to successfully implement its strategic plan.
The stockbroker expects sales to grow at an average annual rate of 26.2% between 2022 and 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 is expected to combine sustained organic growth with high profitability", continues the Paris-based company.
In this context, Euroland initiates coverage of the stock at 'buy', with a price target of 4.15 euros.
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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. The group organizes its activity around 3 core sectors:
- standard products: integrating the design and manufacture of sensors and multifunctional measurement systems for the areas of medicine, biomedicine, aerospace industry and defense;
- customized products: including the design and manufacture of MEMS components, the intellectual property licenses granting and customers cooperation projects for the custom-made development and production;
- dermo-cosmetic pole: integrating the operations and management of the group's assets related to the areas of dermatology and cosmetology, including the Ioma brand.
MEMSCAP 
