Ferroamp’s Q2 report provides further evidence that the commercial ramp is gaining traction, with sales 9% above our estimates and strong sequential growth across both existing sales channels and strategic partnerships. Sales through Aira, Elvy and Vattenfall more than doubled q-o-q, while management describes the start to Q3 as strong despite normal seasonality. Operating cash flow also turned positive, with management expecting this to remain positive for the rest of the year. However, EBITDA came in below our expectations, and higher operating expenses lead us to slightly lower our near-term profitability estimates. We raise our sales and gross margin assumptions modestly, while pushing EBITDA break-even out by one quarter. Our traditional Base Case is slightly reduced to SEK2.7 (2.9) while our new Fair Value is SEK3.0 (see details below), making the Ferroamp shares “Fairly Priced”.
LÄS MER
