MIPS AB (MPZAF – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Adela Dashian from Jefferies maintained a Buy rating on the stock and has a SEK645.00 price target.
Adela Dashian’s rating is based on MIPS AB’s impressive performance in the fourth quarter of 2024, which included a substantial year-over-year increase in net sales and earnings before interest and taxes (EBIT). The company achieved net sales of SEK 144 million, marking a 58% increase compared to the previous year, and an EBIT of SEK 62 million, which was a 260% rise year-over-year and exceeded consensus expectations. This strong performance was driven by broad-based growth across all segments, particularly in the Sports and Moto markets, as well as increased safety volumes.
Despite facing challenges in the post-pandemic environment, such as high inventory levels and uncertain consumer behavior, MIPS AB has managed to maintain its EBIT margin and dividend payout targets. Although the company postponed its financial target of SEK >2 billion by 2027 by two years, the market’s focus is on the reaffirmation of these targets, suggesting that the company’s market opportunities remain strong. This combination of solid financial performance and strategic target reaffirmation underpins Adela Dashian’s Buy rating for the stock.
According to TipRanks, Dashian is a 4-star analyst with an average return of 12.9% and a 58.33% success rate.