DNB Markets - IAR Systems: Sensing improvements
Q1 marked the first quarter in two years with organic sales growth YOY. Alongside gradually normalising customer behaviour throughout 2021, three new milestone product launches and a beefed-up board of directors, we believe this should spark a shift in perception, given the vast potential market opportunity to reignite ~15% organic sales CAGR and revisit 30%+ EBIT margins. We reiterate our SEK180–250 fair value, which corresponds to a 2022e P/E of 27x.Q1 takeaways. Organic sales growth of 6% YOY (our estimate: 5%) marks the first quarter in the past seven with positive organic growth YOY,