In this equity research report, analysts Pontus Klingberg and Emil Windahl take a closer look at Kitron ASA, a Norwegian EMS company offering services within Connectivity, Electrification, Industry, Medical Devices, and Defence & Aerospace. With strong growth momentum within Kitron’s Defence & Aerospace sector and improved profitability amid the ongoing homeshoring trend, the analysts estimate a revenue CAGR of 14.6% between 2023E and 2026E and sustainable EBIT-margins in the 8.8%-8.9% range. An equally weighted DCF and Peer valuation indicates a target share price of NOK 42.7, implying an upside of 34.7% for 2025E.
Investment highlights
- Kitron’s Defence & Aerospace sector is poised for significant growth
- Strong position and moat in the EMS industry
- Improved profitability amid homeshoring trend