Redeye Community: Redeye initiates coverage on Medcap - fairly valued at present

Redeye initiates coverage of the medical technology company Medcap with a fair value of SEK 535 per share. The analyst firm believes that earnings growth is the primary driver of the share price. The primary catalysts are expected to be M&A and quarterly reports. "We believe the company's stock is roughly fairly valued at current levels and believe the company needs to scale up its ability to deploy capital at high returns," it said in an analysis. The stock is trading at SEK 555 in early trading on Monday. Redeye owns shares in Medcap.