Ascom: UBS ups on successful transformation, end-market outlook

Ascom Holding AG

20/11/2020 12:19

** UBS ups Switzerland's Ascom  ASCN.S , a communications
equipment maker with focus on healthcare, to "buy" from
"neutral", citing bottom-up progress and higher hospital
spending in response to COVID-19
    ** The broker says Ascom's new management has successfully
implemented changes to transform its hardware-driven business
into a solutions-oriented company
    ** It lists new regional management, a stronger R&D focus on
software, and general and administrative cost savings as the
bottom-up improvements targeted at challenges in the
transformation 
    ** UBS says it expects Ascom to benefit from hospitals
increasing investments in digitalised workflow to increase
efficiency 
    ** "Recent project wins, despite tight competition from
larger software players, increase our confidence in Ascom's
competitive position," it adds 
    ** The stock is up nearly 12% and on track for its best day
in eight months 


    

 ((elizaveta.gladun@thomsonreuters.com))