Barco Beam Me Up, Barco – But Not Too Fast

Is Barco's strategy beginning to bear fruit, or is one swallow not making a summer? We are happy we gave them the benefit of the doubt after the FY24 results and 1Q25 trading update, given the structural improvements made over the past few years that have continued into the first months of 2025.
Recently, we saw some multiple expansion in our SOTP-valuation. This combined with rolling forward our DCF, results in a higher TP of € 14.0 (was € 13.4).

However, despite Barco not updating its guidance due to ongoing uncertainties, the share price has rallied strongly. With limited upside from current levels, we are downgrading our rating from Accumulate to Hold. We will reassess our position after the 1H25 results in mid-July.