In this equity research report, analysts Cassandra Åstenius and Gunnar Hallberg take a closer look at Gomero, a Swedish safety company working with predictive maintenance of electric network stations. The analysts estimate that Gomero’s international expansion plans, new software solution, and upcoming investments within the energy sector will pave the way for a net sales CAGR of 16.5% between 2021A-2024E. A target EV/EBITDA multiple of 9.0x 2024E justifies a target price of SEK 19.5, indicating a potential upside of 40.3%.
Investment highlights:
- Market tailwind from large upcoming investments within electricity distribution networks.
- Strong expansion plans to the high-potential markets of Australia and the UK.
- Introduction of software solution allows for a highly scalable business model. EBITDA margin estimated to reach 14.7% in 2024E