Kontron : Attractively valued player in structurally growing IoT markets
Kontron is a component and solutions vendor mainly in the industrial IoT (Internet of Things) space. We view the share as a promising investment given: 1/ its leading position in Europe in a structurally growing market, 2/ its clear double-digit EPS growth, 3/ a 50% payout ratio, which likely to be accompanied by share buybacks, and 4/ strong visibility thanks to a backlog offering about one year’s reach. Our peer group-derived target price of € 25 suggests ~26% upside. On this basis, we initiate coverage of Kontron with an Outperform rating.S&T AG is an Austria-based supplier of information technology (IT) solutions, specializing in Industry 4.0, embedded computer systems and Internet of Things (IoT) technology. The Company operates through three segments: IT Services, which handles the end-to-end realization of IT projects, from planning (consulting), through implementation (integration) to long-term operation (outsourcing); IoT Solutions, which focuses on the development of IoT and Industry 4.0 solutions combining hardware, middleware and services marketed to the industrial automation, medical technologies, infotainment and smart energy sectors, and Embedded Systems, which provides hardware featuring embedded technologies used by the transport, aviation and communication sectors. The Company is a full-service-provider of IT services in Central and Eastern Europe. Its core markets are Germany, Austria, Switzerland, Eastern Europe and North America.
Oddo Securities provides securities brokerage and research services. The company offers equity, economic, and derivatives research and credit analysis services. It focuses on insurance, automotive, building materials, pharmaceuticals, telecommunications, information technology, and agri-food industries.
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