VIGO Photonics: sensing the growth ahead (BUY - initiation of coverage)
We initiate coverage of VIGO Photonics (VIGO) with a BUY rating and a price target (PT) of PLN 629/share, implying 18% upside potential. VIGO is a Polish producer of mid-infrared photon detectors, used for industrial and military purposes. It has developed its own production technology and built a production facility, with annual capacity of up to 100,000 detectors (vs. c.12,000 sold in 2021). In 2022, VIGO’s growth pace was harmed by the lack of orders from Safran (its biggest customer) and supply chain issues, as a result of which its sales dropped 6% yoy, while its share price has fallen 25% in the LTM. Both issues, however, are temporary and, from 2023E, we expect VIGO to record a results expansion, driven by strong demand for both industrial and military detectors, and the price hikes it implemented in October 2022. From 2025E, we assume VIGO develops a new revenue stream: infrared arrays that should boost military segment sales growth. We expect VIGO to generate 2022-25E CAGRs of 26% and 49% in sales and EBITDA, respectively. On our forecasts, it is trading at EV/EBITDAs of 12.5-8.6x for 2024-25E, at 14-31% discounts vs. its peers.Vigo System SA is a Poland-based company engaged in the production of detectors business sector. The Company is a manufacturer of standard and customized High Operating Temperature cadmium mercury telluride (HgCdTe) detectors. The Company's products are divided into three categories, including Infrared Detectors, Infrared Cameras and Measurement Equipment. The Company sells its products worldwide, including the United States, Canada, Finland and Australia, among others. It also cooperates and sells the products to NASA.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.