In this financial analysis report analysts Oscar Fredell and Emilian Rehnström take a closer look at Musti Group, a premier pet specialist in pet food and pet accessories and is the Nordic leader within pet food and pet accessory retail, owning companies such as Arken Zoo, Vet Zoo, and Djurmagazinet. Musti Group is set to capitalize on the growing pet parenting market with a revenue CAGR of 14.5% between 21/22A-24/25E. Based on a relative peer and DCF valuation, a target EV/EBIT multiple of 17x in 23/24E is motivated, implying a target price of 26.4 SEK and a potential upside of 56.8%.
Investment highlights:
- Musti Group is set to grow their EBIT with a 31.6% CAGR between 21/22A-24/25E, driven by store maturity, operating leverage, and pricing power
- During 2022 Musti Group increased its number of directly operated stores by 39. Store ramp-up and expanding store network contribute to the estimated revenue CAGR of 14.5% between 21/22A-24/25E
- Musti Group is set to grow at a revenue CAGR of 14.5% between 21/22A-24/25E by capitalizing on the pet parenting trend