We expect a continued re-rating of NOD driven by short range strength and from 2H/21 increased confidence in cellular IoT. NOD reports Q4 results on February 4 and we expect revenues at the high end of its guidance range driven by the strong order backlog. The latter should also support a strong guidance for Q1. We increase our estimates following several positive data points. Our target price is adjusted to NOK 175 (140) and our Buy rating remains firm.
Companies: Nordic Semiconductor ASA
Strong results and guidance increase from Logitech (NOD customer)
Logitech’s PC peripherals revenues up 36% and gaming up 73% y-y
…this is a positive read-across to NOD’s proprietary segment
Supports our expectations for strong Q4 results
Reportedly speculations on a new Apple hardware release on December 8
Indicating that Apple’s device trackers ‘AirTag’ finally will be unveiled?
AirTag is a potential catalyst for NOD - patents indicate BLE and UWB
nRF53 entered volume production
Opening up for more complex application and accurate reading of data
Support for instance growth in medical sensors with more accurate data
Supports BLE audio; near-term potential in gaming headsets in our view
Acquires WiFi team and IP from Imagination Technologies
Price is not disclosed, likely limited current revenue contribution
Positive strategic with NOD moving into combo solutions
In-line with our expectations, as highlighted in our Q3 update
Ublox confirming a potential offer for Telit this morning
Do not expect this to impact competitive landscape in cellular IoT
Solid Q4 and Q1 results expected, supported by the strong order backlog
Device trackers or acquisition (Wifi -> combo solution) potential catalysts
Apple event yesterday was focused on Mac
As expected; no read-across to NOD
Previous reports indicate AirTag (potential catalyst) pushed into 2021
Near-term results nevertheless supported by the strong order backlog
Peer Dialog Semiconductor just reported its results
Dialog BLE revenues was up 8% y-y vs NOD was up 56% y-y in Q3
States “expects the demand increase to continue into Q4”
Apple event next week is the next potential near-term catalyst
Apple will host a November 10 event, likely Mac related
AirTag could be launched – could be a catalyst for NOD
…Though reports have proposed these are postponed into early 2021
We nevertheless expect solid near-term results for NOD
NOD reported Q3 results above the high end of its recent revised guidance range, driven by strong BLE growth at 56% y-y. The backlog improved further to USD 288m (Q2: 202m and + 154% y-y), supporting strong Q4 and Q1 results – with Q4 guidance now looking conservative. We maintain our Buy rating and increase our target price to NOK 140 (125). Besides strong organic growth, we expect acquisitions to expand into combo solutions which could include Wifi.
Q3 revenues above high end of recent guidance in September
45% y-y revenue growth, with 56% growth in BLE(!) and 3% in proprietary
Strong order backlog supporting Q4 guidance: USD 115 – 125m(+38 - 50%)
We will increase our estimates and target price
As expected prior to the Apple event, HomePod Mini was unveiled
HomePod Mini integrates BLE and Thread (and UWB and Wifi)
….as such, NOD could be a potential vendor if combi chips are not used
No device tracker (‘AirTag’) launched, maybe postponed to March 2021
Dialog increases Q3 guidance, partly due to strong BLE growth
NOD’s strong order backlog supports strong 2H/20 results
Apple AirTag continues to be a potential catalyst for NOD
Apple will host an event on October 13 – AirTag potentially launched?
Announces a cooperation to support Amazon Sidewalks on BLE
Slight positive, in our view, supporting BLE as important in smart home
Not impacting our estimates
Apple hosted a special event yesterday
No AirTag launched, where we see NOD as a potential vendor
This follows patents indicating that AirTags support BLE and UWB
The event focused on iPad and Watch – with new health features
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Friday's market sell off saw some violent downward moves in many stocks with little initial differentiation between sectors or the key drivers of businesses, creating significant share price drops in a number of higher quality or uncorrelated names. We take a look at some stocks we believe have either seen an unwarranted sell-off, have seen weakness go under the radar or where there is now a more attractive opportunity.
Companies: ANX IBPO CYAN SOM EQT AFM
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Trinistar Liverpool S.a r.L announces its potential listing of a newly formed single asset company which will own the Capital Building in Liverpool on the IPSX. Upon admission the Company would become a real estate investment trust (REIT). The Capital Building occupies close to a 3.5 acre freehold site in the centre of Liverpool’s business district; the building comprises c425,000 square feet of predominantly of
Companies: ADBE ADBE SYM ARC AVCT CMCL CLIN DCTA FRAN OSI
Gresham has won an extension and expansion deal with a long-standing Tier 1 investment bank customer as it continues to standardise on the Clareti platform. Including this and other deals, current ARR rises to £23.3m, a 5% organic uplift from end June. Clareti/Electra are trading in line, though Gresham flags potential for further new business in FY21 and an “encouraging pipeline” for FY22. Non-Clareti revenues are performing ahead of expectations leading us to upgrade FY21 revenues and adj. EBI
Companies: Gresham Technologies plc
Adjusted EBITDA growth of +19% YoY in H1A reflects both higher margins and higher quality revenues. The Group now has 50%+ visibility over H2E revenues. This year will be second half weighted too but returning momentum post COVID-19 means the business is now in a much stronger position. Fair value lies in excess of twice the current price. Buy.
Companies: Shearwater Group plc
GB Group (GBG) has announced a conditional agreement to acquire Acuant, a leading player in the US identity verification market. At an enterprise value of £547m, it marks GBG’s largest acquisition to date. The deal strengthens GBG’s position in the US, broadens its product offering and accelerates its technology roadmap. We have revised our forecasts to reflect the placing and the acquisition and our normalised EPS forecasts decline 3% in FY22, are flat in FY23 and increase 3% in FY24.
Companies: GB Group PLC
Arcontech has announced that its trading performance is below current market expectations due to one customer reducing its market data spend with the company, and notification from another customer that it will not be renewing its contract from the start of H2 22. The two changes are unrelated and do not involve customers with Arcontech’s core MVCS server-side solution. They instead reflect one customer greatly scaling back its market data team and market data requirements, and a second choosing
Companies: Arcontech Group PLC
TPXimpact has released a very strong set of interims that were well ahead of our forecasts, and which firmly underpin our FY estimates. Revenues leapt +77% to £37.5m (DCe £33.9m) with organic growth of +21% fortified by acquisitions. Gross margin was down -4pts to 31% though this reflected a change in business mix and a temporary increase in use of contractors rather than wage inflation and the group expects to rebuild gross margin going forwards aided by the centralised recruitment benefits fro
Companies: TPXimpact Holdings PLC
MCB acquisition announced: Snap reaction
Companies: Glantus Holdings PLC
This has been a notable half for D4t4; its markets continue to recover from the pandemic, leading to a fine trading performance marked by a raft of new contract wins; management has been refreshed, with an experienced and dynamic new team taking the helm; the geographic expansion into the US and APAC continues; a stream of software updates will maintain Celebrus market leadership; a small consultancy acquisition hints at a more direct market approach in future; and the launch of the exciting fra
Companies: D4t4 Solutions plc
First Property announced interim results that underline the opportunity to grow rental income and capital values over the next 12 months. With cash to invest on behalf of both the Group and its fund management clients, there is scope for earnings growth. With capital values generally rising after the lockdown induced lows, we expect NAV expansion
Companies: First Property Group plc
Intuit continued with its exceptional run and had a robust fourth quarter capping off an exceptional year. Their full-year revenue increased by a staggering 25%, including the addition of Credit Karma with the fourth quarter alone contributing $2.6 billion to the top-line. The biggest drivers of the top-line growth are the Consumer Group segment which grew by 16% and the Self-Employed Group which grew by around 14%. These have wonderfully complemented the company’s core QuickBooks Online offerin
Companies: INTUIT (INTU:NYSE)Intuit Inc. (INTU:NAS)
Arrow Exploration Corp. (AIM:AXL; TSXV:AXL), the high-growth operator with a portfolio of assets across key Colombian hydrocarbon basins, has joined AIM, alongside a fundraise of approximately £8.8m.
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ATOM headquartered in Leeds, focussed on the large-scale production of green hydrogen and ammonia intends to join AIM towards the end of the year. ATOME intends to be spun-out from AIM-listed President Energy Plc, an oil and gas com
Companies: SPA ECR KP2 SAR SYM
*A corporate client of Hybridan LLP
Hostmore plc (MORE.L) has demerged from Electra Private Equity PLC, and the shares admitted to the Premium Segment of the Main Market.. Hostmore is a growing hospitality business with its current operations focused on the American-themed casual dining brand, Fridays, and the cocktail-led bar and restaurant brand, 63rd+1st.
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What’s cooking in the IPO kitchen?
Ashtead Tech, subsea equipment rental and solutions provider for the g
Companies: VAL ALNOV GMR
iEnergizer has reported interim results significantly ahead of expectations, supporting our view that the Group is entering a period of outsized growth and new business wins which will scale rapidly to the short and long term benefit of shareholders. With very attractive financial characteristics and inexpensive valuation, there are significant capital and income returns on offer. Buy
Companies: iEnergizer Limited
Companies: NCC Group plc