Growth: check, margin: check, valuation: check

4% EBIT beat, solid 2025 guidance

Nordic Semiconductor (Buy, TP: NOK160.00) - Not too bad given tail-end of 55nm

While implied guidance for H1 revenues is ~1–4% below our forecast and consensus, the underlying sequential performance is directionally in line with the broader set of peers to have reported to date. We find this growth and gross margin profile solid, given we are at the tail-end of the life of Nordic’s 10-year-old 55nm technology platform. Combined with the arguably unprecedented level of uncertainty for the company’s customers, we find it achieving a ~50% gross margin and accelerated Cellular IoT momentum while competing with companies manufacturing on process nodes with materially better c...

Hexagon (Buy, TP: SEK115.00) - Q1 results were a clearing event

Hexagon’s Q2e outlook was better than feared after its Q1 profit warning. We see an attractive risk/reward following the recent sell-off amid: 1) the organic sales growth and earnings momentum story unfolding with defensive traits (albeit bruised); 2) the ‘NewCo’ spin-off crystallising values; 3) new leadership starting on Monday, which should appeal to a broader investor base; and 4) an undemanding valuation on absolute and relative bases, near a historical trough. We reiterate our BUY but have cut our target price to SEK115 (137), having lowered our 2025e adj. EPS by 12%.