In this financial analysis report, analysts Erik Mellander Wallin and Viktor Bergqvist take a closer look at Norditek Group, a company providing system solutions to the waste management sector in Sweden. The analysts estimate a revenue CAGR of 16.3% from 21/22A to 27/28E. An equally weighted DCF and peer valuation, motivate a target multiple of 22.2x EV/EBIT in 23/24E, implying a target price of SEK 30.2 and a potential upside of 88.8%.
Investment highlights:
- Norditek is positioned to grow at a revenue CAGR of 16.3% between 21/22A-27/28E by capitalizing on market tailwind and further legislations
- Immense loss of material value, amounting to SEK 42bn each year in Sweden creates extensive market opportunities for Norditek
- The Company’s distinguishing business model “Norditek trappan” ensures stability and non- cyclical growth