Report
Christoffer Wang Bjørnsen
EUR 84.58 For Business Accounts Only

Nordic Semiconductor (Buy, TP: NOK125.00) - Could get darker before the dawn

After another mismatch between our below-consensus expectations and reality, as Nordic Semiconductor’s tier 1 customers seemingly start to roll over, we have again materially cut our estimates in the search for trough top-line and earnings momentum. We have lowered our 2024–2025e top line by ~10% and our EBIT by 53–32%, and now factor in a trough for the cycle in Q3 2024, albeit with a deeper bottom. We have cut our target price to NOK125 on our reduced estimates, but reiterate our BUY as we expect the downstream inventory correction to end in the next 1–3 quarters, setting the share price up for a possible attractive run in a potential upcycle next year.
Underlying
Nordic Semiconductor ASA

Nordic Semiconductor is a fabless semiconductor company which designs, sells and delivers integrated circuits and related intellectual property for use in short-range wireless applications. Co. is engaged in ultra-low power wireless solutions, based on its proprietary 2.4 Gigahertz Radio Frequency and Bluetooth Smart technology. Co.'s components are manufactured by subcontractors and sold through electronics distributors to manufacturers of branded electronics across a range of product categories. These categories include personal computer and tablet accessories, sports/health monitors, mobile phone accessories, media remote controls, home and industrial automation, and other applications.

Provider
DnB Markets
DnB Markets

DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.

 

Analysts
Christoffer Wang Bjørnsen

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