Boreo: Waiting for more small bolt-on acquisitions - Nordea

Boreo will report its Q4 2022 on 3 March 2023. We take a slightly more cautious view, owing to a slower construction market and the exit from the excavator distribution agreement in Finland and Sweden, which is likely to burden margins in the short term. Boreo is well positioned to continue with smaller bolt-on acquisitions, although we believe the company is concentrating on organic growth, improving profitability and augmenting working capital efficiency at its acquired companies. Based on underlying operations and M&A value-creation opportunities, we derive a slightly higher fair value range of EUR 42-50 (42-49) per Boreo share. Marketing material commissioned by Boreo.

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