In this financial analysis report, analyst Oscar Wennberg takes a closer look at the Swedish health-tech company QleanAir (QAIR). The analyst estimates recurring revenue from rentals and aftermarket services to steadily grow to account for 59% of the total revenue by 2023E. As a result of the Covid-19 pandemic, the pattern of behaviour changed, resulting in increased expectations of air quality and new market opportunities for QleanAir to expand into. A strong EBIT margin of 18.5% justifies a valuation in line with peers, resulting in a target price of 87.8 SEK and a potential upside of 75.9%.
Investment highlights:
- Modular air-purifying units and a wide portfolio of particle filters enable QleanAir´s products to be used in multiple markets.
- A steadily increasing ARR allows QleanAir to continue to develop the products and expand into new regions and markets.
- New expectations and regulations in air quality lay the foundation for further global expansion.
