In this financial analysis report, analysts Noak Neuvonen and Ture Eknor take a closer look at Swedish online wall-art company Desenio Group (DSNO). The analysts estimate a revenue CAGR of 9.0% in 2021A – 2023E due to geographical expansion and increased interest in online, affordable art. Based on a peer valuation, an EV/EBIT target multiple of 10.0x is justified, resulting in a share price of SEK 4.4 and a potential upside of 54.1%.
- Return On Ad Spend of 4.6x in 2018A – 2021A and high customer satisfaction indicate for great customer retention.
- Expansion into the North American market opens up new revenue streams.
- Market for online affordable wall-art is estimated to grow with a CAGR of 18.0% until 2024E.