Asker screens as High Risk based on Citi’s quant models given its relatively short trading history, but we do not apply this risk rating as it does not reflect the resiliency of its European MedTech end-markets, the diversification of its revenues or the fragmentation of its (largely public) customer base.  

We see a number of important risks that could prevent the shares achieving our target price:


• OEM direct sales efforts could potentially weigh on Asker’s growth trajectory and returns
• The other major risk is the inability to pass on price rises in products. Over the past years, Asker has passed on price rises. If price reductions were forced onto Asker, there is margin risk. 
• Acquisitions are an integral part of Asker’s strategy. Asker boasts a good M&A track record, but external growth is more risky than organic growth. Increased competition for deals could inflate exit multiples and potentially weigh on future returns. 

If the impact from any of these factors proves to be more negative than we anticipate, the stock will likely have difficulty achieving our financial and price targets. However, if any of these factors prove to have less of an effect than we anticipate, the stock could materially outperform our target