Tagmaster reported flat sales but strong margins and cash flow in the third quarter. Surprisingly, gross margins improved, despite pressure from higher component costs. Opex were well contained and EBITDA margins improved to almost 18%. The market climate remains sluggish, particularly in Europe. And management cautiones that gross margins will likely come down next year, although Tagmaster is implementing price increases to mitigate higher costs. Our new Fair Value around SEK 40 per share indicates further potential in the share.
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