Edison Investment Research Limited
Edison Investment Research Limited: Edison issues outlook on Riber (RIB)
18-Jun-2020 / 17:59 GMT/BST
London, UK, 18 June 2020
Edison issues outlook on Riber (RIB)
Riber has the dominant share in global molecular beam epitaxy (MBE)
equipment. This equipment is used by researchers to develop next-generation
compound semiconductor materials used in fibre-optic networks, electronic
device displays and sensors for autonomous vehicles as well as for
commercial material production. We believe that demand should be supported
by exposure to key structural trends such as demand for faster data, next
generation displays and the proliferation and evolution of sensors to
support greater automation and intelligence (Industry 4.0). The shares trade
at a substantial discount to Riber's larger peers that share similar growth
drivers.
Riber is currently trading at a discount to both peers on all prospective
multiples. While some discount for relative capitalisation and low free
float is justified, the size of the discount (eg 0.8x EV/sales for Riber vs
2.4x for our year 1 sample mean) is, in our opinion, unwarranted. This gives
ample scope for share price appreciation as investors gain confidence that
demand for MBE systems will not be affected in the medium term by the
coronavirus outbreak and that Riber can address the delivery issues that
marred FY18 and FY19 reported profits.
Click here [1] to view the full report.
All reports published by Edison are available to download free of charge
from its website
www.edisongroup.com [2]
About Edison: Edison is an investment research and advisory company, with
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Edison is authorised and regulated by the Financial Conduct Authority [3].
Edison is not an adviser or broker-dealer and does not provide investment
advice. Edison's reports are not solicitations to buy or sell any
securities.
For more information please contact Edison:
Anne Margaret Crow, +44 (0)20 3077 5700
tech@edisongroup.com
Learn more at www.edisongroup.com [2] and connect with Edison on:
LinkedIn https://www.linkedin.com/company/edison-investment-research [4]
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YouTube www.youtube.com/edisonitv [6]
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End of Announcement - EQS News Service
1073931 18-Jun-2020
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(END) Dow Jones Newswires
June 18, 2020 12:59 ET (16:59 GMT)
