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Enea: Comment on contract termination - Redeye

Redeye thinks the likely termination of the EUR24m 5G contract, with almost half of the delivery left, further damages the confidence towards Enea. It appears that the underlying reason for the termination is that a competitor has outpriced Enea, rather than Enea's solution not being good enough. Nevertheless, we assess that Enea will 'lose' cSEK15m of quarterly revenues. Redeye lowers its valuation range.

Redeye thinks the likely termination of the EUR24m 5G contract, with almost half of the delivery left, further damages the confidence towards Enea. It appears that the underlying reason for the termination is that a competitor has outpriced Enea, rather than Enea's solution not being good enough. Nevertheless, we assess that Enea will 'lose' cSEK15m of quarterly revenues. Redeye lowers its valuation range.
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