In this equity research report, analysts Marius Fischer and David Apelryd take a closer look at Guideline
Geo (GGEO), a Swedish company that develops, manufactures and sells geophysical instruments globally.
The Company is transitioning from its R&D phase towards commercializing the business. Stronger product
offering, coupled with lagging effects from expanding the distributor network and operational leverage is
expected to drive a 8.0% revenue CAGR until 2026E with EBIT growing 46.0% from 2023A to 2026E.
Through an equally weighted DCF and peer-valuation, a target price of SEK 16.3 is motivated, implying an
upside of 23.5%.
Investment Highlights
▪ Transitioning from R&D towards commercializing its products.
▪ Lagging effects from expanding the distributor network creates an investment opportunity before
its impact on revenue.
▪ Consolidated product portfolio and operational leverage driving margin expansion.