Pareto Securities

Nordic Semiconductor - A Bluetooth revolution - BUY/TP NOK 185 (135)

Update

NOD continues to exceed expectations (and then some), including a backlog increase of almost 5x y/y and a Q1’21 guiding which on mid-range was 34% above consensus. The latter now equals 92% y/y growth, showcasing an unprecedented increase in demand for its products. Reflecting this, we up our 2021 revenue estimate to NOK 580m (up 43% y/y), which its current backlog already covers 85% of. While the discrepancy of supply/demand for wafers (key component in NOD’s products) might hold back growth or push it out in time, its positive that NOD has implemented measures to mitigate some of this. We increase our TP to NOK 185 (135) and reiterate out Buy recommendation.