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Ngenic Q2 2023: Sustained expansion alongside significant cash outflow - Redeye

Redeye states that Ngenic’s financial performance was below our projections on sales and profitability. While margins were weaker than our estimates, Hardware sales remained strong, showing a growth of 145% y/y. However, considering Ngenic’s current cash burn, it is probable that the company will require external funding to sustain its operations and growth trajectory. As a result, we anticipate lowering our base case and valuation range.

Redeye states that Ngenic’s financial performance was below our projections on sales and profitability. While margins were weaker than our estimates, Hardware sales remained strong, showing a growth of 145% y/y. However, considering Ngenic’s current cash burn, it is probable that the company will require external funding to sustain its operations and growth trajectory. As a result, we anticipate lowering our base case and valuation range.
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