Xaar has made two material announcements as part of its appearance at the main printing equipment exhibition, drupa, providing further confirmation of its strategic progress. The first is the launch of its Thin Film/P4 family of print heads, on time and on budget after multiple years of development and investment. This platform offers substantial improvements over the existing technology and is expected to open up new markets and underpin future growth. The second is a strategic partnership with Ricoh, extending Xaar’s product offering through collaborative development at modest cost. We have made no changes to our forecasts at this stage, which put the group on a 2016 EV/EBITDA multiple of 10.3x, c.15% below Electronics and Electrical Equipment peers and the wider capital goods sector.
