A lot to like now organic growth has turned

Q1e: earnings beat as Network Solutions returned to org. growth. We raise '24e-'26e adj. EBITDA-capex by 3-4% on 3-4% higher sales. Low valuation, fruitful cost savings and easy comps: up to BUY (Hold).

Tough comps, but solid underlying progress

Enea AB: 1 director

A director at Enea AB bought 10,000 shares at 39.900SEK and the significance rating of the trade was 52/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showi...

Enea (No_rec, TP: SEK) - Discontinuing coverage

We have discontinued our regular coverage of Enea, and our last published recommendation, target price and estimates should no longer be relied upon. Going forward, we plan to cover Enea ‘powered by Redeye’.

Northern Lights

Enea (Hold, TP: SEK95.00) - Underlying business still shrinking

Enea’s business momentum improved in Q4 and is set for a seemingly strong Q1e as well, thanks to a large one-off order in the legacy OS business, which we believe to be from Nokia. Apart from the ensuing pull-in boost, not much has changed recently, we believe. While we understand the pipeline is expanding, we remain on the sidelines for Enea ahead of the Q1 results but have raised our target price to SEK95 (90).

Northern Lights

Northern Lights

Enea (Hold, TP: SEK90.00) - Upbeat Q4e, mixed outlook

In our view, Enea’s earnings are likely to continue to recede in 2023. While H1 2022 was tough for the company, we believe H2 2022e was helped by greater demand for network cybersecurity and energy-saving 5G traffic management, in addition to increasingly pronounced seasonality structurally. With a positive Q4 outlook given following a constructive Q3 and solid ESG support, we have raised our target price to SEK90 (75). Still, organic growth is set to remain negative short-term. With a potential...

ENEA - A step in the right direction

Sequential improvements, but still on the softer side We reduce ‘22e-‘24e adj. EBIT by 0-5% Organic growth needed for share price gains: HOLD

ENEA - Sequential improvements, but still not out

Sales +1/-1%, adj. EBIT -2/-15% vs. ABGSCe/cons. Expect cons to cut ‘23e EBIT by 2-5% Share to trade up 3-5% initially, but then come down

ENEA - Raising Q3 estimates on new order

CAD 4.4m 5G traffic management order announced… …of which CAD 3.3m SW licenses will be booked in Q3e We raise ’22e adj. EBIT by 8% and reiterate HOLD

Enea (Hold, TP: SEK75.00) - Continued contraction despite wins

We believe Enea continues to face a challenging trading environment, although recent contracts gave Q3e a much-needed boost. While we have increased our Q3 forecasts, we have cut our target price to SEK75 (100) and reiterate our HOLD.

ENEA - Revising mid-term margin assumptions

Weak Q3 on the cards amid weak wording from Allot We struggle to see a 20% EBIT margin in ‘22e-‘24e Near-term uncertainty remains, still not a bargain: HOLD

ENEA - Allot cuts H2 sales on project delays

Allot sees delayed deals, cuts ’22 sales guidance by 7% Allot expects improvements to prevail in Q4 The data create more uncertainty for H2 - HOLD

Nothern Ligths

Enea (Hold, TP: SEK100.00) - Hard reset

A prolonged inter-generation top-line slump, combined with high operating leverage and a macroeconomic downturn have led us to make deep forecast cuts. Also, we have downgraded the stock to HOLD (BUY) and cut our target price to SEK100 (200).

ENEA - Another weak quarter - uncertainties remain

Soft Q2, but with small sequential improvements We reduce ’22e-’23e adj. EBIT by 17-11% 15x ’22e adj. EV/EBIT is still not a bargain - HOLD

ENEA - Not out of the woods

Weaker sales and adj. EBIT than expected Expect consensus to take down estimates by c. 10% Negative share price reaction warranted

ENEA - Too much uncertainty to get us excited

Weak Q2 on the cards ’22e-’24e adj. EBIT down by 3% Valuation support but near-term uncertainty: HOLD