Hove A/S (HOVE)

Hove A/S (HOVE)

In this equity research report, analysts Axel Agardh and Emil Anttila present an analysis of Hove A/S, the Danish frontrunner in lubrication solutions and pumps for industrial applications, with a keen focus on wind turbines. Hove commands a 40% market share in a niche, expanding market and is now poised to extend its reach into new territories and sectors. Recognized for its superior products that offer significant time savings and reduce the risk of costly equipment failures, Hove is strategically positioned for growth. Forecasting a revenue CAGR of 19% from 152 MDKK to 253 MDKK by 2025E and an EBIT margin increase reflecting their scalable model, the analysis concludes with a target price of DKK 11.1 DKK. This price suggests an upside of 82.4%, based on an equally weighted DCF and peer valuation.

Investments highlights

  • Market expansion drives revenue growth in coming years
  • Hove’s business model ensures a trustworthy revenue stream
  • Hove’s first-mover advantage in port crane lubrication

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