CYBER1 - Cyber security at a discount - Mangold Insight Analysis

Mangold is updating the cyber security company Cyber Security 1 "CYBER1" after the quarterly report. CYBER1's income increased by 21.5 percent during the first quarter of 2022 compared to the same period last year, and as such is well on its way to achieving the sales estimate for 2022. The EBIT margin was -6.6 percent for the quarter, which can be attributed to the set up of the Special Operations Centre (SOC) in the new Managed Services business area. CYBER1 has been profitable during the previous four quarters, and Mangold estimates that they will return to profitability on a full-year basis in 2023. 

CYBER1 has acquired a number customers in the new Managed Services business area. The development of the business area has entailed higher operating costs, but is expected to generate increased sales and improved margins in the future. 

The company carried out a cyber security tour in Africa and the Middle East during the spring, which is expected to contribute to increased sales moving forward. CYBER1 has also signed a new distributor agreement with Picus Security, active in simulated cyber attacks, which expands the company's offer. Mangold chooses to lower the estimate for the gross margin in 2022 and 2023, given the lower margin in the first quarter. The change does not significantly affect the valuation, which means that we reiterate the price target of EUR 0.057 per share. 

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