Juha disagreed and also raised revenue estimates, but is more conservative on profitability estimates than I had expected.
We upgrade Optomed to Buy (prev. Accumulate) and raise our target price to EUR 2.2 (prev. EUR 2.0). As expected, Q3 revenue was strong thanks to a large device order, but profitability clearly exceeded our expectations. A leaner cost structure and high-margin AI revenue began to show in the bottom line, which also supports the outlook. We significantly raised our earnings forecasts, and we believe the company is close to cash flow breakeven. The valuation (2027e EV/S 1.6x) is low relative to the potential of Aurora AEYE, and we consider the expected return very attractive even after factoring in the risks.