In this equity research report, analysts Andreas Dahlqvist and Christoffer Hägglund take a closer look at Norbit, an innovative tech company offering tailored solutions in three global niche segments: Connectivity, PIR and Oceans, with the Oceans segments driving the thesis. The analysts estimate revenue CAGR of 25.3% and an EBIT margin expansion from 25.8% to 31.0% until 2025E, stemming from having leading product offerings in niche segments exposed to strong market tailwinds. An equally weighted DCF and SOTP-peer valuation implies a target price of 68.6 NOK, indicating a 27.9% upside.
Investments highlights
- Overlooked Oceans segment expected to drive EBIT and revenue growth
- Norbit’s market driven approach and high level of innovation ensures 16.1% growth until 2027E
- Announcement of public tendering contract act as short-term catalysts