Asetek’s business relies on consumer spending in the global gaming market, for which the demand outlook for 2023 remains highly uncertain. However, after a significant revenue decline in the past five quarters, we think the current cycle has reached a trough. After the Q3 report, our EBIT estimates are cut by 42% for 2023 and 11% for 2024, while our DCF-based valuation range falls to NOK 25-69 (28-73).
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