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Paxman Q4’23: Softer top line but still 36% growth - Redeye

Redeye saw a sales development that was a bit softer than expected. Costs were slightly higher than expected in the quarter, primarily other operating expenses that were higher. We expect to adjust our sales estimates downward for 2024e in the region of 5-7% as our expectations have been high. That said, Paxman is still showing impressive growth even though the reimbursement process is not where the company expects it to be. By lowering our expectations for 2024e, we expect to make a slightly negative revision of our fair value range and base case. However, we do not expect it to be more than a marginal effect in total, as we still expect a long growth runway ahead.

Redeye saw a sales development that was a bit softer than expected. Costs were slightly higher than expected in the quarter, primarily other operating expenses that were higher. We expect to adjust our sales estimates downward for 2024e in the region of 5-7% as our expectations have been high. That said, Paxman is still showing impressive growth even though the reimbursement process is not where the company expects it to be. By lowering our expectations for 2024e, we expect to make a slightly negative revision of our fair value range and base case. However, we do not expect it to be more than a marginal effect in total, as we still expect a long growth runway ahead.
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