Nordic Semiconductor ASA
NOD: XOSL (NOR)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
NOK 664.00 | Bkxnpwr | Cmcvmlf |
Nordic: Initiating Coverage With Narrow Moat and NOK 165 FVE, but Thesis Not Free of Risks
We are initiating on Nordic Semiconductors with a narrow moat, supported by intangible assets, a Standard Morningstar Capital Allocation Rating, and fair value estimate of NOK 165, 30% higher than the last closing share price. We expect a weak performance during 2023, in line with other semiconductor stocks, with midteen revenue declines as the electronics market absorbs excess inventories, followed by a recovery in 2024. Our fair value estimate represents a forward 2024 enterprise value/EBITDA multiple of 18 times.