Market expectations on the Fingerprint Cards is too high at a number of points regarding the remainder of 2017.
It says Arctic Securities as has lowered the recommendation for biometriaktien from keep to sell, which the News agency Directly reported on earlier on Wednesday.
Arctic point for the first of revenue in the second quarter. The Norwegian brokerage and analysfirman think here of a fall of 52 per cent. Consensus says -38%.
Secondly, it implies the market’s expectations that the company will bounce back to delivering about 100 million sensor per quarter during the second half of the year. It think the Arctic is too aggressive.
”These two points should be negative catalysts in the future and it is the main reasons behind that, once again, we are lowering our estimates,” writes the Arctic.
Arctic believe that the Fingerprints revenue will reach 800 million in the second quarter, an estimate that is based on the 46 million delivered sensors during the period (in this case, a sequential increase from 37 million in the first quarter). The Arctic is estimated that the overall elevated inventory levels will be a challenge throughout the second quarter, in keeping with the company’s latest communication on this point.
The Norwegian firm also points out that nine smart phones have been launched with Fingerprints sensors so far in the second quarter. It can be set against 44 in the second quarter of 2016. Admittedly, they are phones that were launched during the current quarter, the so-called högvolymstelefoner, for example, from Xiaomi, but according to the Arctic remember that the phones that were launched during the spring constitute the base for revenue in the third quarter and the fourth quarter – and then, the market expects ”significant sequential revenue growth”. Arctic think volymförväntningarna regarding the second half of the year may prove to be too high.
Artic lowers in parallel with the recommendation also riktkursen from 33 to 20 kronor. On Wednesday morning drops the share price by 3.6 per cent to more than sek 29 sek.
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