Barco Go deep, Go broad

"Go deep, Go broad" is a strategy that involves both expanding into new markets ("go broad") and strengthening your presence and offerings within existing markets ("go deep"). It's a two-pronged approach to growth, seen in business strategies like those used by Barco during its CMD, which seeks to scale a business by increasing the reach to go to the mid-segment while simultaneously expanding its hardware leadership in certain segments into software growth driven by an AI-powered transformation.


Barco reconfirmed its guidance for FY25, expecting a topline and EBITDA margin for FY25, above the level of FY24. Looking ahead to FY28, Barco targets to grow towards €1.1bn in sales (KBCSe € 1.11bn), 15% recurring revenues, and a 15% EBITDA margin (KBCSe from 14.4% to € 14.8%), supported by new product introductions, software-driven growth, and operational efficiency.


Starting from a strong cash position and an expected FCF of €200-250m in the next 3 years, Barco continues to evaluate opportunities for inorganic growth, while prioritizing shareholder returns and strategic flexibility.


We maintain our Hold and € 14 Target Price even after our model update.