DNB Markets - IAR Systems: Winds of change
IAR Systems is trading at a 2022e EV/EBIT of 12x. Although the recent CEO dismissal could cloud short-term operational momentum, we believe it could signal a turning point in IAR Systems’ two-year uphill climb. Having reset our forecasts for Secure Thingz, we have cut our fair value to SEK130–220 (150–220) and expect IAR to report 19% organic sales growth YOY in 2022e.What we learnt from Q3: 1) on our numbers, IAR reported 17% underlying organic growth in Q3 YOY (adjusted for revenue recognition of strategic customers); 2) IAR will review its licence model and we do not rule out an eventual