In this equity research report, analysts Oscar Petersson and Joen Sundmark take a closer look at I-Tech, a biotech company based in Sweden. I-Tech is a fast-growing company that is attractively valued at an EV/S multiple of 4.6x 2023E in comparison with the average EV/S multiple of 15.3x over the last three years. Applying a target multiple of EV/S 7.0x 2023E indicates an upside of 43.7%.
Investment highlights:
- With a first-mover advantage in a market with high barriers of entry, I-Tech has an advantage over potential competitors.
- Global environmental requirements and new regulations create a larger demand for I-Tech’s product.
- Estimated sales CAGR of 52.5%, contributing to a rapidly increased EBIT-margin, from negative in 2020A to 32.4% in 2023E.
