Category: <span>R&A Reports</span>

Category: R&A Reports

Equity Research / R&A Reports

Matas Group

In this equity research report, analysts Anna Bodén and Julien Nguyen take a closer look at
Matas Group, the leading Nordic beauty retailer. Matas’ acquisition of KICKS Group solidifies
the Company as the largest omnichannel beauty retailer in the Nordic region, operating 489
physical stores and six webshops. With an expanded assortment of 70,000 products and more
efficient operations, the Company is estimated to capitalize on the structural demand trend for
e-commerce, where revenue is estimated to grow at a CAGR of 6.0% and EBIT margin is
projected to increase from 5.7% to 8.2% by 27/28E. An equally weighted DCF and a peer
valuation imply a target price of DKK 151.6, indicating a potential upside of 30.9%.

Equity Research / R&A Reports

Norva24

In this equity research report, analysts Edvin Egnell and Caspar Lennér take a closer look at Norva24,
the leading underground infrastructure maintenance (UIM) player in Northern Europe. Norva is set to
capitalize on ongoing consolidation within the UIM industry, with revenue estimated to grow at a CAGR
of 17.3% until 2028E. Through an equally weighted DCF and a peer valuation, a target price of SEK 37.2
is implied, indicating a potential upside of 26.4%.

Equity Research / R&A Reports

Firefly

In this equity research report, analysts Marcus Kerschner and Erik Holst take a closer look at
Firefly, a Swedish company that offers fire protection solutions for process industries. Due to
extensive regulations on fire safety and the increasing cost of production stops for industries, the
demand for preventive fire solutions is becoming more substantial. Therefore, revenue is
estimated to grow at a CAGR of 23.0%, and EBIT margin is expected to rise from 12.2% to
15.1% between 2023A and 2025E. The target price of SEK 287.0 is based on an equally
weighted average between a DCF and a peer valuation and implies an upside of 28.7%.

Equity Research / R&A Reports

Cambi

In this equity report, analysts Colin Pettersson and Jonas Höyby Fathi takes a closer look on Cambi, the
global leading provider of thermal hydrolysis plants (THP), which help water treatment plants turn
climate neutral and cut operational costs with 50.0%. With growing demand, the analysts estimates a
topline CAGR of 17.2% until 2026E, with sustainable EBIT margins in the 21.0-22.0% range. Through an
equally weighted DCF and peer valuation, a target price of NOK 20.5 is implied, indicating a potential
upside of 40.4%.

Equity Research / R&A Reports

SKAKO

In this equity research report, analysts Jesper Hansén and Rebecka Grapenmyr take a closer look at
SKAKO, a Danish company that designs, develops, and sells industrial vibratory equipment in three
different segments: recycling, fasteners, and mining. In Q4 2023, SKAKO divested SKAKO Concrete to
focus on their more sustainable and profitable segment, SKAKO Vibrations. The Company is set to
capitalize on the EU’s more stringent sustainability regulations due to the superior nature of SKAKO
equipment, driving a revenue CAGR of 9.3% until 2028E and an EBIT margin expansion from 9.9% in
2023A to 13.0% in 2028E through increased employee efficiency. The target price of SEK 115.0 is based
on an equally weighted average between a DCF and a peer valuation, implying an upside of 54.2%.

Equity Research / R&A Reports

Envirologic

In this equity research report, analysts Edvin Asplund and Hannes Östlund takes a closer look at
Envirologic, the market leading manufacturer of automatic pig barn cleaning robots. Envirologic is set
to capitalize on increasing demand driven by an accelerating supply shortage in the agriculture labor
market, with an estimated revenue CAGR of 17.0% until 2026. Through an equally weighted DCF and
peer valuation, a target price of SEK 27.0 is implied, indicating a potential upside of 3.1%.

R&A Reports / Trading and Quantitative Research

Predicting Credit Ratings

In this report supervised by OQAM, the analysts Niklas Gälldin, Pontus Neumann, and Oscar Näslund Cuesta explore the possibility of predicting public Nordic companies’ credit ratings using machine learning models. By utilizing historical quarterly financial data, stock data, and Moody’s historical ratings, the hypothesis is that changes in credit ratings can be predicted ahead of their publication, providing a competitive edge.
The developed model showed promising results and predictive abilities regarding a company’s credit risk. However, the limitation of the dataset to the Nordic market significantly impacted the predictive power of the model. While the hypothesis remained unchallenged by the investigation, the need for a wider scope of considered companies is evident.

M&A / R&A Reports

Balco Group (Pitch Deck)

In this pitch deck, analysts Oscar Fredell and Emilian Rehnström deliver a comprehensive analysis of Balco Group, the leader in the balcony industry in the Nordics, emphasizing its business model, market position, and financial health. Utilizing various valuation methods such as DCF and LBO models, the analysts derive a target valuation of SEK 1200 – 1600m. The following section includes a selection of assumptions underpinning this valuation, and highlights some of the insights from which the investment considerations were made.

M&A / R&A Reports

Concentric (Pitch Deck)

In this pitch deck, analyst Filip Ledin Nilsson present a comprehensive evaluation of Concentric. The company is a Swedish pump manufacturer with a rich history in producing motor- and hydraulic products. By employing an extensive range of valuation methodologies, including DCF analysis, peer benchmarking, precedent transactions, and an LBO framework, the analyst determines a target valuation range for Concentric, spanning from SEK 7.1 – 9.9 billion.

Equity Research / R&A Reports

Cloudberry Clean Energy ASA

In this equity research report, analysts Layal Sibai and Samuel Arctaedius present an analysis of Cloudberry, the Norweigan actor is experienced in the renewable energy industry where the Company owns, develops, and operates hydropower plants and wind farms in the Nordic. Cloudberry is set to capitalize on the growing demand for renewable energy, with revenue estimated to grow at a CAGR of 38.5% from 282 NOKm to 748 NOKm between 2023E-2025E. The target price of 13.8 NOK is based on an equally weighted average between DCF and peer valuation and implies an upside of 53.3%.As the company leverages the rapidly expanding commercial EV market and maintains an average 7-year ROIC of 22.9%, organic revenue is projected to grow at a CAGR of 6.0%. The target price of SEK 221.4 is based on an equally weighted average between a DCF and a peer valuation and implies an upside of 25.1%.