SRH AlsterResearch AG Update: S&T AG - Continued profitable growth

S&T AG (Update), Technology
MCap EUR 1.4bn; BUY, PT EUR 31.00 (upside 45%)
 

Link: S&T AG_update

S&T AG released strong prelim. 2020 results pointing towards a strong finish in Q4/20. For fiscal 2020, sales continued to growth by 11% yoy with EBITDA margins expanding beyond 10%. We believe that S&T will continue benefitting from stellar growth expectations driven by numerous secular growth trends such as edge computing, artificial intelligence (AI) or IoT. Still, we do not see that this growth and earnings potential is accurately reflected in S&T’s share price. With increased estimates, we reiterate our BUY recommendation and new PT of EUR 31.00, offering a handsome upside of 45%

 

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