Coor: Disappointing, but issues should be fixable - ABG

We cut '25e and '26e EBITA by 21% and 5% on weak margin
Margins to remain weak in H1'25, but we think the issues are fixable
Share is trading at 10-7x EBITA adj. on '25e-'27e (12-16% FCFy)


Underlying market remains stable

The market remained stable with good contract activity in Q4, according to management. And looking at FY24, the contract retention rate improved to 88%, in line with its long-term average. Organic growth was -1% in 2024 and -3% in Q4, slightly weaker than we expected, especially given the retention rate, here management points to variable volumes having normalised from high levels in 2023 as a negative factor. We think the organic growth will remain subdued in Q1 (-2%) partly for this reason but turn positive in H2. We expect 1% organic growth in '25 and 3% in '26-'27.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/coor/Equity-research/2025/2/coor---disappointing-but-issues-should-be-fixable/