Profoto Holding (PRFO)

Profoto Holding (PRFO)

In this report, analysts Sten Almgren and Ludvig Rippe take a closer look at the Swedish photography lighting provider Profoto (PRFO). The analysts estimate a rising structural demand for premium lighting solutions, driven by commercial brands and e-commerce platforms. Combined with recent initiatives to expand the base of addressable customers, revenue is estimated to grow at a CAGR of 10% 2022-2026E, with the EBIT margin expected to maintain in the range of 26-28%. A DCF-analysis suggests a target price of SEK 108.7 and an upside of 23.7%.

Investment highlights

  • Capitalizing on market tailwinds, Profoto will achieve top line growth above consensus estimates of 5% 2022-2026E.
  • Continuous improvements in the product portfolio will sustain pricing power and profitability.
  • Revenue synergies will enable the acquired company StyleShoots to perform a SEK 80m penetration of the American market 2023-2027E.

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