In this equity research report, analysts Mikael Bamberg and Gustav Bartholdsson present an in-depth
analysis of Pierce Group, a market leading e-commerce within the motorcycle segment. The company
is set to consolidate this fragmented market, supported by a cost-effective program expected to drive
an EBIT margin expansion of 6 percentage points by 2026E. Through an equally weighted DCF and
peer valuation, a target price of SEK 14.5 is implied, indicating a potential upside of 93.4%.
Investment Highlights
● As the largest player, Pierce can consolidate the market by leveraging economies of scale
● The company is at a pivotal point, with the cost-effective program expected to yield results in
the coming quarters
● Due to the chaotic past and previous PE overhang, investors are overlooking the current
transformation