DNB Markets - IAR Systems: Soft start to 2023
IAR Systems’ Q1 results were soft and missed our adj. EBIT forecast by 38% as it ramped up its sales organisation. We reiterate our SEK140–250 fair value as we appreciate the combination of being net cash positive, defensive elements from ~40% recurring revenues, and optionality from its embedded security offering. We note that insiders have accumulated shares at the current share-price levels in 2022–2023.Weak Q1. IAR reported Q1 organic sales growth of 5% YOY (from 7% YOY in Q4 and 11% in Q3), which led to net sales 4% below our forecast in light of longer sales cycles. The positive