Nordea has reiterated its "buy" recommendation on the pattern generator company Mycronic and raised its target price to 255 kronor (previously 251).
In its analysis, Nordea states that it has become more optimistic about Mycronic after attending the Productronica trade fair in Munich, Germany. There, Nordea had the opportunity to speak with over 15 relevant industry players and competitors of the company.
The main takeaway from the fair is a reinforced positive outlook on Mycronic's two divisions, Global Technologies and Pattern Generators, which are expected to account for approximately 18% and 64% respectively of the estimated adjusted operating profit for next year.
“We now have greater confidence in the long-term potential of Global Technologies, which supports continued strong development,” Nordea writes, adding that the division helps to reduce the company's near-exclusive reliance on profit growth from Pattern Generators.
“We also received interesting comments regarding Pattern Generators, particularly concerning its potential to capture a significant share of the semiconductor photomask market due to less intense competition,” Nordea adds.
Mycronic shares rose by nearly 3%.
