IAR Systems’ Q4 report was a slight hiccup in its accelerated profitable growth turnaround, but we still expect it to see 45%+ EBIT growth YOY in 2023e with relative insulation from support and updates at ~40% of net sales, and durable design activity as developers choose IAR’s tools to boost productivity and the cost of ownership. We reiterate our SEK140–250 fair value.
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