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Edison Investment Research Limited London, UK, 28 May 2019 Edison issues initiation on Riber (RIB) Riber (RIB) is the global leader in molecular beam epitaxy (MBE) equipment. This is used by researchers to develop next-generation compound semiconductor materials used in fibre-optic networks, electronic device displays and sensors for autonomous vehicles as well as for commercial material production. Although the company's revenue profile is lumpy, we believe that demand should be supported by exposure to key structural trends such as demand for faster data, next generation displays and the proliferation and evolution of sensors to support greater automation and intelligence. The company's order book points to a recovery in FY19 following a difficult FY18. The shares trade at a substantial discount to Riber's larger peers who share similar growth drivers. The share price has halved since June 2018, and Riber is now trading at a discount to both peers with respect to all prospective multiples. While some discount for relative capitalisation and low free float is justified, the size of the discount (year one EV/Sales multiple of 0.7x for Riber vs 2.3x for our sample mean) is, in our opinion, unwarranted. This gives scope for share price appreciation as Riber coverts the strong order book into a sustainable profit recovery. All reports published by Edison are available to download free of charge from its website About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the . Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information please contact Edison: Anne Margaret Crow, +44 (0)20 3077 5700 Learn more at and connect with Edison on:
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