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Summary

• Hexagon AB (OTCPK:HXGBF) remains a ‘BUY’, driven by operational recovery and strong cash conversion.
• Recent divestitures, including Design & Engineering and the planned Octave spin-off, shift Hexagon toward greater cyclicality and hardware exposure.
• Forward organic growth is expected to normalize at 7–9%, below prior double-digit rates, with heightened volatility and risk due to structural changes.
• Valuation upside is limited (14–15%) and best suited for risk-tolerant investors, with near-term uncertainty from macro, China exposure, and premium compression.

Jonathan Knowles/DigitalVision via Getty Images

In my previous pieces on Hexagon, I took a firm "BUY" stance following a correct neutral "HOLD" rating in early 2025 due to overvaluation. You can follow that rating history and see the trend since

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