Industrials
Key concerns highlighted in Gradient's 18-page initiation report include: 1) Semiconductor downturn to result in a material revenue gap for NATI. 2) Surging receivables suggest declining revenue quality (2Q22 AR to 3 month revenue reached its highest level in over 5 years). 3) Declining deferred revenue indicates less balance sheet support for future revenue growth. 4) Faces margin headwinds from a previous drawdown in accrued compensation and from outsized growth in prepaid expenses. 5) Trades at a significant premium to its industry peers.
Edition: 146
- 14 October, 2022