DNB Markets - IAR Systems: Dent in turnaround trajectory
IAR Systems’ Q4 report was a slight hiccup in its accelerated profitable growth turnaround, but we still expect it to see 45%+ EBIT growth YOY in 2023e with relative insulation from support and updates at ~40% of net sales, and durable design activity as developers choose IAR’s tools to boost productivity and the cost of ownership. We reiterate our SEK140–250 fair value.Q4 sales in line with our forecast but operating leverage declined to 7%. IAR reported Q4 organic sales growth of 7% YOY (from 11% YOY in Q3 and 14% in Q2), which led to net sales 1% above our forecasts. We expected SEK2.1m