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Hexatronic: Softer Market Ahead - Redeye

Redeye retains its positive view despite lowering its forecasts and Base Case. We consider the Q2 report solid, with strong margins and improved cash flow. On the other hand, management sees a softer market in H2 2023 and guides for low to zero organic growth. While we expect the softer market to be temporary, as the need for FTTH remains intact, we also slightly reduce our mid- and long-term sales forecasts.

Redeye retains its positive view despite lowering its forecasts and Base Case. We consider the Q2 report solid, with strong margins and improved cash flow. On the other hand, management sees a softer market in H2 2023 and guides for low to zero organic growth. While we expect the softer market to be temporary, as the need for FTTH remains intact, we also slightly reduce our mid- and long-term sales forecasts.
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