Large Bank haussar Fingerprint – shares lift – Private Businesses

Handelsbanken expects to Fingerprint Cards will be able to generate significant cash flows going forward. It allows for additional acquisitions or dividends, or both.

“We find the valuation attractive at 14 times expected earnings in 2016 and believe that the harvest is far from over,” writes SHB in an analysis released on Friday.

SHB is the first of the four major Swedish banks that take up coverage of Fingerprint Cards. The recommendation for FPC share is increasing and the target price is set to 600 kronor, slightly Direct has reported earlier in the morning.

Fingerprint Cards’ technology head start, anchoring in the ecosystem and the sale of new industry verticals will ease concerns about the standardization of technology , says SHB.

“Improved corporate governance and a strong board / management should add further to investor confidence,” writes the bank.

Handelsbanken believe there is a substantial growth beyond 2016. Even with a fall in FPC market expects the bank with a revenue growth in the years to come, according to the analysis.

Fingerprint has over 95 percent of the market outside of Apple and Samsung, and despite the fact that SHB expects the market share will decrease, believe the bank to FPC’s revenue in 2017 will approach 9 billion.

“Beyond next year, we expect that growth is helped by the use of fingerprint sensors in smart cards and other applications,” writes the bank.

SHB expect the finger sensor volumes, excluding Apple and Samsung, will increase from about 141 million in 2015-1079 million by 2020. Although the bank expects the average price per sensor will drop, trace bank to the value of the addressable the market will nearly five-fold from around $ 420 million this year to $ 2 billion in 2020.

“We believe that the FPC will continue to be the dominant player in its addressable market, but expects that the company’s market share falls from nearly 100 percent to 50 percent, resulting in a share of the total market of around 30 percent in 2020, “writes SHB.

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