DNB Markets - Verisec: Going through changes
Verisec’s Q1 report was disappointing in our view, but we like that the divestment of non-core businesses lessens the financial risk and increases the margin and growth profile. We expect the stock to re-rate on greater Freja eID visibility in 2020, as we expect accelerated cloud security adoption driven by Covid-19. We have cut our fair value to SEK70–110 (80–120).Freja eID tailwinds from remote-working environment, as organisations place increased focus on secure cloud processes (log-in, signing, and approval), as shown by the ~180 relying parties Freja eID has reached (250%+ growth YOY).