In this equity research report, analysts Felix Stenström and Konrad Fransson take a closer
look at MEKO, the market leader in Northern Europe’s automotive aftermarket. MEKO is set
to capitalize on the ongoing market consolidation and EV transition, supporting an
estimated revenue CAGR of 7.1% until 2026E and an EBIT margin expansion of 240 BPS.
Through an equally weighted DCF and peer valuation, a target price of SEK 183.7 is implied,
indicating a potential upside of 38.1%.
Investment highlights:
● Resilient business set to capitalize on an aging car fleet
● EV growth fuels market consolidation and expanding franchise network
● Ongoing cost-saving measures drive margin expansion from 5.1% 2023A to 7.5% in 2026E