In this equity research report, analysts Premton Krasniqi and Tobias Karlsson take a closer look at Dedicare (DEDI), a Swedish health care and social work staffing company operating in the Nordic region. The analysts estimate that Dedicare’s all-time high in employee headcount, recent acquisition of H&P Search & Interim and AI-powered staffing solution will pave the way for a net sales CAGR of 9.5% from 2021A-2023E. A target EV/EBIT multiple of 7.0x 2023E justifies a target price of SEK 108.4, indicating a potential upside of 22.4%.
- All-time high in employee headcount will lead to net sales growth.
- AI-powered staffing solution enables more consultants to be employed, indicating an estimated 18.2% increase in employee headcount and net sales growth of 29.2% from 2021A-2023E.
- Discount to peers despite being market leader with better margins, trading at 6.2x EV/EBIT 2023E compared to the peer average of 7.0x.