In this equity research report, analysts Edgar Marthin and Wictor Bodelind take a closer look at Nordisk Bergteknik, northern Europe’s largest provider of rock handling and foundation services, operating 24 subsidiaries in geographical clusters across Sweden, Norway, and Finland. The analysts believe that the market fails to recognize the Group’s ability to consolidate their market and that continuous market consolidation coupled with the market tailwind is estimated to compound growth and drive economies of scale. A DCF model supported by a Peer-valuation implies a target price of 43.6 SEK and an upside of 44.4%.
Investments highlights
- EBIT margin expansion going forward as a result of economies of scale and cost synergies
- Positioned to capitalize on new infrastructure investments and thus driving topline growth
- Continuous M&A activity driving growth and market penetration