B3 Consulting Group: Weighed down by weak market - ABG

We lower '23e-'25e adj. EBITA by 6-2%
Q4 macro data slightly worse than Q3
'24e EV/EBITA of just below 9x


What to expect in Q4'23

For Q4'23, we expect sales of SEK 302m, implying y-o-y growth of -9%, along with an EBITA of SEK 24m, corresponding to an EBITA margin of 7.8%. Our new estimates mean that we have reduced Q4 sales and adj. EBITA by 1% and 12%, respectively. Macroeconomic data for IT consultants is tough once again, as demand, hourly prices, recruitment and utilisation are declining. We expect demand, recruitment and utilisation to weigh on B3 in the near term, whereas hourly prices should be relatively stable thanks to the company's relatively senior IT consultant line-up and offering.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/b3-consulting-group/Equity-research/2024/2/b3-consulting-group---weighed-down-by-weak-market/