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Tempest Security: Growth has returned, margins will come - SEB

Ahead of Tempest’s Q1 report, due on 25 May, we revise our 2022-24E EBITDA by 6-9%, accounting for recent M&A and subsequent share issue. For Q1, we expect continued recovery with 21% revenue growth y/y. Extraordinary costs related to M&A, establishment in the US and the group transformation initiative will weigh on earnings, but we still expect slight positive Q1 EBITDA. Our updated mid-point DCF value is SEK 43 (SEK 42).

Ahead of Tempest’s Q1 report, due on 25 May, we revise our 2022-24E EBITDA by 6-9%, accounting for recent M&A and subsequent share issue. For Q1, we expect continued recovery with 21% revenue growth y/y. Extraordinary costs related to M&A, establishment in the US and the group transformation initiative will weigh on earnings, but we still expect slight positive Q1 EBITDA. Our updated mid-point DCF value is SEK 43 (SEK 42).
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