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Freja eID Group: More of the same - DNB

Freja eID’s Q1 results provided continued ammunition to support both our positives and cautions, having now beaten our user intake forecasts for seven consecutive quarters, although higher than expected FCF burn in a market increasingly focused on short-term profitability remains a challenge. We continue to believe Freja eID is well-positioned to capitalise on its market opportunity, although an inflection point in its revenues could take a couple of quarters to play out. We have lowered our fair value to SEK12–17 (17–25), having cut our 2022–2023e net sales by ~25%.

Freja eID’s Q1 results provided continued ammunition to support both our positives and cautions, having now beaten our user intake forecasts for seven consecutive quarters, although higher than expected FCF burn in a market increasingly focused on short-term profitability remains a challenge. We continue to believe Freja eID is well-positioned to capitalise on its market opportunity, although an inflection point in its revenues could take a couple of quarters to play out. We have lowered our fair value to SEK12–17 (17–25), having cut our 2022–2023e net sales by ~25%.
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