In this equity research report, analysts Samuel Ullmann and Svante Jansson take a closer look at Bilia, one of Europe’s largest full-service suppliers of cars. Bilia is set to capitalize on continuing consolidation within the car sales- and services industry, with revenue estimated to grow at a CAGR of 5.0% until 2030. Through an equally weighted DCF and a peer valuation, a target price of 165.1 SEK is implied, indicating a potential upside of 34.5%.
Investments highlights
- Continued industry consolidation supports further top-line growth driven by accretive acquisitions
- Increasingly complex service-requirements are set to expand Bilia’s EBIT margin to 5.3% by 2025
- Bilia’s service segment provides higher and more sustainable margins