In this equity research report, analysts Carl Viktor Wümer and Sebastian Wester take a closer look at the Swedish dietary supplement company Zinzino (ZZ B). The analysts estimate a revenue CAGR of 13.7% between 2021A-2023E, largely driven by Zinzino’s ability to expand to new submarkets through its efficient direct selling business model. Furthermore, based on a peer valuation, an EV/EBIT target multiple in line with peers of 10.6x is motivated, indicating a share price of SEK 62.1 and an upside of 70.3%.
- Expanding to new countries will be a catalyst for increased revenue.
- Decreasing OPEX as a % of revenue will increase EBIT margin from 8.5% in 2021A to 9.5% in 2023E.
- The strong growth prospect is underestimated by the market, resulting in a 41.3% discount compared to peers.