Edison Investment Research Limited: Riber (ALRIB): Key enabler of compound semiconductors

DJ Edison Investment Research Limited: Riber (ALRIB): Key enabler of compound semiconductors

Edison Investment Research Limited Edison Investment Research Limited: Riber (ALRIB): Key enabler of compound semiconductors 28-Jun-2021 / 09:17 GMT/BST
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London, UK, 28 June 2021

Riber (ALRIB): Key enabler of compound semiconductors Demand for Riber's molecular beam epitaxy (MBE) is supported by exposure to key structural trends such as demand for faster data, next-generation displays and the proliferation and evolution of sensors to support greater automation and intelligence (Industry 4.0). We expect that management's focus on growing revenues from services to the large installed base will support profit recovery in FY21. A relaxation in export controls or a major evaporator order would potentially represent upside to our estimates and could drive share price appreciation.

At current levels, the shares are trading at a discount to the mean of its peers (Aixtron and Veeco) with respect to prospective EV/sales and EV/EBITDA multiples (eg year one EV/EBITDA 13.9x vs 19.3x). We believe that this level of discount is justified given Riber's smaller market capitalisation and lower margins. However, we see scope for share price appreciation if higher than anticipated numbers of MBE system orders, which could be catalysed by a relaxation of export controls, or receipt of a major evaporator order drive estimate and margin upgrades. Click here to view the full report or here to sign up to receive research as it is published.

All reports published by Edison are available to download free of charge from its website www.edisongroup.com About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings. Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney. Edison is authorised and regulated by the Financial Conduct Authority. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. For more information, please contact Edison: Anne Margaret Crow [phone] [e-mail] Learn more at www.edisongroup.com and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group-/ Twitter www.twitter.com/Edison_Inv_Res YouTube www.youtube.com/edisonitv
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1212667 28-Jun-2021

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June 28, 2021 04:17 ET (08:17 GMT)