In this equity research report, analysts Gent Kita Elezi and Emily Elkaneva take a closer look at Bulten, a Swedish company that produces, develops and distributes fastener elements. Due to continued investments in production and a unique service offering, revenue is estimated to grow at a CAGR of 9.3% from 2023-2025 while EBIT margins return to historical levels as the Company offsets capacity issues. The target price of SEK 105.6 is based on an equally weighted average between a DCF and a peer valuation and implies an upside of 39.7%.
Investment highlights:
- The Full Service Provider enables Bulten to increase market share
- Capitalising on the rapidly growing EV market set to grow at a 12.0% CAGR from 2023E to 2028E
- Investments in production facilities enables production scalability to drive a revenue CAGR of 9.3% between 2023E