Handelsbanken has identified a buying opportunity in Dynavox, the Swedish provider of assistive communication technology, despite the stock's underperformance this year and heavy short selling.
The bank's analysts view the current valuation as attractive ahead of the company's imminent interim report, suggesting that market pessimism may be overdone.
Dynavox shares have struggled in 2026, weighed down by broader sentiment in the small-cap segment and specific concerns regarding the company's growth trajectory.
The high level of short interest indicates that a significant portion of the market is betting on further declines, creating a potential for a short squeeze if the upcoming results exceed expectations.
The bank's positive outlook hinges on the belief that Dynavox's fundamentals remain solid despite the recent price weakness.
By highlighting the disconnect between the stock's depressed price and its underlying business metrics, Handelsbanken is positioning the stock as a contrarian play for investors willing to take on the risk of a heavily shorted name.