Rational Reports Record Q3 Benefiting From Easing of Supply Chain Constraints

Having released an ad-hoc trading update five weeks prior, which saw management more than double its full year revenue growth outlook, narrow-moat Rational's third-quarter results had no further surprises. We maintain our EUR 540 fair value estimate, despite adjusting our estimates to reflect an acceleration in deliveries in 2022. Ultimately, the easing of supply chain constraints will result in revenue expected in later years being brought forward, and the group's unusually large order book starts to return to more normalized level. Shares are fairly valued.