'25-'26 ambition implies P/E 5.5-3.9x

We lower '24e revenue by 8%, but lift '26e by 28%. '25-'26e ambition of 30-40k units implies EPS of NOK 3.4-4.7, corresponding to PE ratios of 5.5-3.9x.

Optimistic for major design wins in '24

2024 could be a catalyst year

Potential for transformative design wins in next 12 months. We forecast 40% revenue CAGR '24e-'26e. If successful: our different scenarios imply P/Es of 10x, 2.6x and 1.0x.

Q3 beat, reiterates FY guidance

Tough market, but transformative year ahead

Sales continue to be affected by slowdown, but demand should come up in H2, and transformative deals could materialise in next 12 months.

Market conditions continue to be challenging

Slowdown in server market likely affected Q2

Napatech continued to be affected by customers' buying behaviour in Q1, with sales declining 29% y-o-y, and the gross margin was only 55%, explained by extraordinary component costs related to components purchased last year.

Better CF driven by lower capex

Large potential but patience is needed

Soft end to a challenging 2022