Bildkälla: Stockfoto

Image Systems: Soon Back in Black - Redeye

Redeye remains optimistic on the case, as we foresee a turn-around in 2021 and further progress in the years ahead. We believe Image Systems will now return to its growth path after last year’s dip. Fixed costs have been reduced significantly, while excellent gross margins and higher volumes will yield good leverage.

We are now only making minor changes to our forecasts. We are however more confident
in a turn-around in 2021 and prospects for continued growth and improved profitability
over the coming years. Fair value in our Base case scenario is inching up to around SEK 1.9
per share (previously: SEK 1.7). The valuation range is still wide: SEK 0.8-3.0 due to high
operating leverage.
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