In this fundamental analysis report, analysts William Sjögren and Jakob Lewrén
take a closer look at I-tech, a Swedish biotech company developing and selling
Selektope, an ingredient incorporated in underwater paint for ships used to prevent
barnacles from attaching to the ship’s hull, minimising drag and fuel consumption.
The market has punished the company over exaggerated regulatory risks whilst
underlying fundamentals and outlook remain strong. The analysts estimate further
adoption in China and the dry-docking market, which is currently underrepresented
in the revenue split given the market size and opportunity. Given the 42% copper price
surge in 2025, the analysts estimate that volumes will switch from copper-based alternatives
to Selektope as it becomes the financially superior choice. Regulatory pressure further compounds
this as Selektope is asymmetrically environmentally positive. An equally weighted DCF and
relative valuation, where a 2027E EV/EBIT of 12x is applied, corresponds to an upside of 37.7%.
Investment Thesis
- Deepening China exposure unlocks a structurally larger aftermarket
- Copper price surge accelerates the switch to Selektope
- Compliance pressure makes premium antifouling a necessity.