BTS Group: Ready to join the recovery path - ABG

We expect 16% EBITA growth in 2024 from better market & scale
Estimates down on European miss and FX, adj. EBITA -5-8%
Share at 14.3x 2024e EV/EBITA with 15% EBITA CAGR '23-'26e


Set up for growth and margin expansion in 2024e

BTS delivered on its FY guidance and reported its strongest quarter ever with Q4 EBITA up 21% y-o-y (+5% vs ABGSCe and +15% vs ABG-collected consensus). The US market has started to recover following weakness in the tech sector in H2'22-2023, while we are a bit cautious on the European market due to the negative growth in Q4 and comments about hesitant customers. The shining star in 2023 was Other markets, which grew 8% in 2023. We expect a further recovery in North America and Other markets in 2024. BTS enjoys a net cash position and said during the conference call that it is looking into several opportunities, which entails potential in 2024 even though BTS rarely acquires companies that add more than 4-5% to group sales.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/bts-group/Equity-research/2024/2/bts-group---ready-to-join-the-recovery-path/