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Gapwaves: Start of production confirmed - SEB

Gapwaves had a solid start to the year, growing net sales by 220% y/y to SEK 15.6m, with solid cost control. The key highlight in Q1 was confirmation of the start of production with Hella, which also seems to be deepening its collaboration with Gapwaves. Our high projected growth for the coming years hinges on traction with tier 1 automotive suppliers. We reiterate our DCF-based fair value range of SEK 25-34, raising near term estimates.

Gapwaves had a solid start to the year, growing net sales by 220% y/y to SEK 15.6m, with solid cost control. The key highlight in Q1 was confirmation of the start of production with Hella, which also seems to be deepening its collaboration with Gapwaves. Our high projected growth for the coming years hinges on traction with tier 1 automotive suppliers. We reiterate our DCF-based fair value range of SEK 25-34, raising near term estimates.
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