(Boursier.com) — Kalray plunged by almost 10% to 18.2 euros the day after a particularly disappointing publication. The specialist in hardware and software technologies dedicated to the management and intensive processing of data only achieved €25.8 million in turnover in 2023. This figure shows growth of +57% compared to 2022 but stands out clearly lower than the recently lowered forecast to around 30 ME.
Kalray explains that the turnover target of 30 ME set last September could not be achieved, mainly taking into account the delay of a large order (around 3 ME) in the media and entertainment sector. . This major order, initially scheduled for the end of 2023, is expected in January. As a result, the initial target of breakeven EBITDA in 2023 could not be achieved. Kalray now expects a large improvement in its EBITDA, the loss of which should be halved in 2023 (last year, 2022 EBITDA was -2.7 ME).
This publication is not likely to reassure investors given a new “miss” on the guidance, explains Oddo BHF. However, management plans to achieve growth in its 2024 turnover similar to that of 2023 and seems very confident in its ability to achieve this objective. Due to this poor performance, the broker lowers its estimates for 2024 and 2025 turnover to 39.7 ME and 58.4 ME respectively (vs 45.1 ME and 62.7 ME). From a company contact, the broker understands that Kalray was able to complete the evangelization phase with DELL salespeople, which should allow better growth of the contract with DELL.
In addition, now that Kalray has completed the operational phase of the Jumbo contract, the company wishes to open up to new customers, which should support medium-term growth. Its new contract with JB&A should also be a growth driver. The analyst therefore continues to believe in Kalray’s potential and its ability to increase its revenues in the coming years. However, he remains aware that expectations will be demanding and therefore maintains a high risk premium… To ‘outperform’ on the stock, the broker lowers its target from 32 to 28 euros.
“The stock could be under pressure in the short term even if these upheavals do not, in our opinion, call into question the potential of the group and its technologies. The coming months could therefore bring interesting entry points,” affirmed Portzamparc before the opening of markets. The stock market house is to ‘keep’ the value with a target lowered from 23 to 19.9 euros.
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