In this equity research report, analyst Viking Svensson take a closer look at the Danish Freetrailer group A/S. The Company is growing quickly as they expand contracts with existing partners and enters new markets. The analyst estimates an EBIT margin of 19.5% in 2022/2023E, compared to 11.4% in 2020/2021A, and project a revenue cagr of 30.6%. Based on a discounted cash flow analysis, supported by a peer valuation, a upside of 37.8% is justified. Motivating a share price of 49.9 DKK.
Investment highlights:
- ROIC of 34.5% indicates network effects and economies of scale
- Unique win-win solution generating 28.6% CAGR in trailers until 2024/25E
- Price hikes and expanding contract with IKEA in Germany
