In this equity research report, analysts Hugo Bogren and August Wigfors provide an in depth analysis of Oriola Corporation, a pharmaceutical distributor operating in the highly regulated markets of Sweden and Finland. The Company is positioned to unlock significant value through cost efficiency, new high-margin data sales services, and a future divestment of the overlooked retail asset Kronans Apotek. Based on an equally weighted peer and DCF valuation using a target multiple of 8.8x 2027E EV/EBIT, a target price of 1.73 EUR is implied, indicating an upside of 57%.
Investment Thesis
● High-margin data sales service “Oriola Insights” drives gross profit and margin expansion
● Structural efficiency improvements double EBIT and support long-term profitability
● Undervalued 50% stake in Kronans Apotek offers additional upside potential