B3 Consulting Group: Fighting a tough market with cost optimisation - ABG

We lower '23e-'25e adj. EBITA by 5-1%
B3's lowered '25 targets offset by cost-savings programme
'23e-'24e EV/EBITA of ~7x


Performed in line with estimates in a tough climate

Q3 showed, once again, that the IT consulting market is facing tough conditions. EBIT declined nearly 60% y-o-y, driven primarily by a weak utilisation rate. The organic decline was approx. 5%, whereas we expected -7% and consensus -6%. The company generated an adj. EBIT that was ~12% above our estimate but in line with FactSet consensus. All in all, the report was in line with our estimates, differing only slightly in absolute terms.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/b3-consulting-group/Equity-research/2023/10/b3-consulting-group---fighting-a-tough-market-with-cost-optimisation/