In this equity research report, analysts Sebastian Fjellström and Johan Axelsson Håkansson take a closer look at Opter, a Swedish SaaS company that is market leaders in Nordics for route optimization and transportation software. The analyst estimate a revenue CAGR of 16.4% between 2021-2025E resulting from customer growth in the existing Nordic markets and an indexed based pricing model creating more revenue per existing customer. An equally weighted DCF and peer valuation with a EV/EBIT target multiple of 19.0x 2024E gives a target price of SEK 72.7, indicating an upside of 41.5%
Investments highlights
- Well positioned to become market leaders in Denmark and Finland
- Pricing power in business-critical product will result in an increase of ARR SEK 126.7K 2022 Q3 to SEK 155.9K 2025E
- A Scalable business model will improve EBIT margin from 15.6% 2021 to 30.6% 2025E