Catella: Muted transaction environment a short-term burden - ABG

Quiet Q1 came in below expectations
EBIT estimates cut by 3-4% for 2024e-2025e
2023e EV/EBIT of 6x with 4-9% dividend yield


Weak transaction activity behind Q1 earnings miss

Catella delivered a Q1 report on the weak side, with both sales and EBIT coming in below ABGSC expectations, primarily driven by Corporate Finance and the Investment Manangement segment. The AUM was flat sequentially despite the fact that the company divested Catella Hospitailty Europe due to its unsatisfactory profitability development, which resulted in an outflow of SEK 2bn. Catella has an additional SEK 10bn in committed AUM capital to be put into use in the coming year within new development projects and properties, which will be the main driver of AUM growth in the short term.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/catella/Equity-research/2023/5/catella---muted-transaction-environment-a-short-term-burden/