NYAB: Economic headwinds are blowing
Yesterday, NYAB lowered its guidance for 2023 considerably, based on the effects of macroeconomic factors on demand and profitability. The profit warning surprised us after the growth targets were raised in the summer. Reflecting the guidance cut, we significantly lowered our 2023 estimates, and the estimates for the next few years also took a hit, even though we expect the headwinds to be temporary. As the high expectations proved too optimistic, we also feel there is downside pressure in the acceptable valuation at least for the time being. Thus, we lower our target price to EUR 0.55 (previous EUR 0.70) and reiterate our Reduce recommendation.
