In this equity research report, analysts Tjard Marx and William Samuelsson take a closer look
at Synsam Group AB, one of the leading Nordic optical retail chains. Synsam is set to
capitalize on its unique and innovative recurring revenue model with continued subscription
growth and store expansion, leading to further market consolidation. Subscription’s are
forecasted to grow at 17.1% CAGR until 2029E. Through an equally weighted DCF and a peer
valuation, a target price of SEK 63.8 is implied, indicating a potential upside of 47.0%.
Investment Highlights
● Top-line growth driven by the expansion of the subscription-based offering
● Rural market expansion boosts profitability, targeting a 25.8% EBITDA margin by 30E
● Business model transformation improves cashflow margins to 22.7% in 30E