Analyst Adela Dashian of Jefferies maintained a Buy rating on MIPS AB, with a price target of SEK580.00.
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Adela Dashian has given her Buy rating due to a combination of factors surrounding MIPS AB’s strategic position and market dynamics. Despite the emergence of new competition from HEXR’s Release Layer System (RLS), which has recently gained attention in Virginia Tech’s helmet rankings, MIPS AB remains confident in its established technology. The company has a long-standing reputation for its rotational impact protection systems, which have been integrated into numerous helmet brands over two decades.
Adela Dashian acknowledges that while HEXR’s RLS presents a potential future challenge, it is still in the pre-commercial phase with uncertainties regarding scalability and durability. MIPS AB’s management has expressed openness to competition, viewing it as a reinforcement of the importance of their pioneering technology. The analyst believes that the immediate risk of disruption from RLS is minimal, and MIPS AB’s proven track record and extensive market integration make it a strong buy opportunity.