In this fundamental analysis report, analysts Stephanie Jirhage and Kaspar Appelholm take a closer
look at Brødrene A&O Johansen, a Danish family-owned wholesaler supplying technical products and
components to professional tradesmen across Scandinavia. The market underestimates AOJ’s
operating leverage, synergy-driven growth from recent acquisitions and underlying real estate value.
Danish building market turnaround and downturn investments support a group 200 bps EBIT margin
uplift by 2027, while Swedish segment is estimated to grow with a 22% CAGR to 2027, driven by
confirmed water and sewage investments. Based on an equally weighted DCF and peer valuation
using a target multiple of 10.4x 2027 EV/EBIT, a target price of SEK 131.6 per share is implied,
corresponding to an upside of 34.7%.
Investment Thesis
● Swedish water and sewage investment cycle unlocks multi-year growth
● Danish construction market rebound with embedded operating leverage
● Synergy-driven upside from acquiring AO Workwear
Lund University Finance Society
