Wyld Networks - Foundations in place for commercialisation - Mangold Insight Analysis

The virtual satellite network operator IoT Wyld Networks ended 2021 strongly with several new collaboration agreements. Wyld reported higher income than estimated for 2021, and is well on its way to reaching the sales estimate for 2022. The company received orders of MSEK 17,0 and MSEK 11,3 (excluding data revenue) in the agricultural and forestry sectors. Mangold asses that the orders will generate 40 percent of the sales estimate for 2022 and shows Wyld's ability to generate high sales growth going forward. 

Together with Eutelsat, Senet and TrakAssure, Wyld has formed a consortium relating to IoT infrastructure. In doing so, Wyld is expanding its offers to include tracking of assets within supply chains, a market characterised by high growth. Wyld has also expanded its partner network ahead of commercial launches with companies from the agricultural sector, forestry, IoT and terrestrial networks. Overall, Mangold believes that there are good prerequisites for a successful global commercialisation of Wyld Connect.

Mangold has valued Wyld Networks with a DCF model. The price target  is raised from SEK 25.25 to SEK 33.00 per share, corresponding to an upside of over 90 percent. The increase is based on the large incoming orders and the expanded partnerships. In order for the price target to be realised, Wyld will need to report a profit in 2024, and increase sales going forward.

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