Redeye today publishes its first analysis of Fingerprint Cards

Redeye’s research report on Fingerprint Cards is the first publicly available long term value assessment of the company which has had Europe's most traded share and been one of the most acclaimed, controversial and contested in the past year.

Redeye's goal has been to dispel as many as possible of the question marks that has been surrounding Fingerprint Cards, FPC.

Our team of analysts, specialized in assessing fast-growing tech companies, have worked since the end of last year and in this report we go through the company’s strategy and operations as well as the products and their market to better understand FPC’s competitive advantages. Our goal is to focus on the longer term profit generation potential of the company since we believe that’s what really generates value for a long-term investor.

These are some of Redeye´s key findings:

• Fingerprint´s strong operational capabilities will provide barriers of entry that has previously been overlooked and will allow the company to strengthen it´s position as the leading global supplier of fingerprint sensors in 2016.
• Fingerprint will be able to leverage it´s strong position and it´s system integration capabilities to enter new verticals, beginning with smart cards in late 2016.
• In our base case Fingerprint revenues are expected to grow at a CAGR of 15 % from 2015 – 2021 with solid EBIT-margins of 37 %.
• Redeye’s Fair Value Range indicates a value of SEK 225-1 475 per share with a fair value of SEK 625 in our Base Case.

The Redeye approach is to focus on company fundamentals and help investors make their own educated decisions. We provide no “buy”, “hold” or “sell” recommendations, instead we give our assessment in a three-part Redeye Rating. In it we list Company Quality for five areas, identify events that can impact on future valuation in Catalyst Potential and gives a Fair Value Range with a Base, a Bull and a Bear Case. The Base Case represents a scenario that is not overly optimistic, nor pessimistic. The Bull Case represents an optimistic scenario, but still not unreasonable, the opposite is true for our Bear Case where the scenario is pessimistic but not to an unreasonable extent.

The full research report on Fingerprint Cards is available at http://beta.redeye.se/company/fingerprint-cards/481400/fingerprint-cards-china-your-hand#company-navigation