In this equity research report, analysts Melina Granberg and Rasmus Nilsson take a closer look
at Micro Systemation AB, a mobile forensics pioneer serving among others police and military
in addressing the legislators’ current and greatest challenges. The Company is positioned to
capitalize on fast growing mobile forensics industry by a complete and appreciated product
offering, making the company see revenue grow at a CAGR of 15.0% through 2026E and EBIT
margin rising from 6.6% LTM to 23.0% in 2027E. Based on an equally weighted DCF and Peer
valuation, a target EV/EBIT multiple of 16.4x EBIT 2025E is motivated, implying an upside of
57% from today’s share price of SEK 48.5.
Investment highlights
● Industries barriers to entry and appreciated products make MSAB capitalize on the
fast-growing industry.
● By active positions in drafting legislative frameworks and superior compliance, the
analysts see market penetration in Europe.
● An inflection point in personnel costs creates operational leverage going forward.