Idea note
This is an Idea note; It’s a collection of early signals – companies mentioned in fund letters, blogs, or by sharp investors online. Not a full pitch, just a starting point for ideas that might be worth a more in-depth look.
Poised for Strong Recovery as Boeing/Airbus Ramp Production
Idea source: Exelity
Price 235.5 SEK (2025-07-03)
CTT Systems AB - Leading provider of aircraft humidity control systems serving Boeing and Airbus. Listed on Nasdaq Stockholm, Aerospace & Defense sector.
Ticker: CTT | Timeframe: 12-18 months | 🔁 Recovery
Exelity believes CTT Systems is set for a strong recovery as inventory levels normalize and aircraft production speeds up. The company has faced a tough period with distributor inventory buildup, but recent data shows Boeing and Airbus are increasing their production rates, which should boost demand for CTT’s humidity control systems. Trading below its historical valuation, the fund sees potential for the stock to reach SEK 290, roughly 30% higher than current levels.
Setup: Market-leading position in aircraft humidity control with near-monopolistic characteristics serving Boeing 787 and Airbus A350 programs.
Latest Development: Q1 2025 inventory destocking completed, Q2 2025 guidance of SEK 75-85M indicates recovery beginning.
Mispricing Reason: Temporary inventory adjustment masked underlying demand strength, creating a valuation discount.
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