Buy Signal on Barco NV (BAR-BE)
Barco has a rather poor track record with a behavorial score of 3/10 therefore we consider the signal as mainly short term.
Barco is a € 1.8 Bn market cap and a Belgium-based technology company, which specializes in the design and development of professional visualization equipment and solutions. The company offers its products in such operating segments as Entertainment (primarily active in the field of digital cinema), Enterprise (including the control rooms and the corporate activity) and Healthcare (dedicated to the high-resolution visualization segments of radiology and mammography and IP-connectivity solutions for the surgical room). The company's products range includes display monitors, projectors, video walls, image processing and connectivity and interactivity software.
the Belgian company's joint venture, Cinionic, just announced it has won a major projection equipment contract with AMC Entertainment.
Barco just released a Q1-22 revenue growth of 20% combined with orders up +8% y/y. The order book reach €530 M at the end of march, up 51% y/y.
Barco is expected to grow revenues by 22% y/y in 2022 to € 977 m, and the operating margin by 500 bp to 7.5%. EPS are expected to rise by 70% in 2023 and 20% in 2024. The stock currently offers a dividend yield of 2%
Short term catalyst: Strong Q1 revenue growth, giant AMC contract.
This signal looks mainly company specific.