Eolus Vind: Longer than normal sales cycles - ABG

Good Q4 to cap great 2023
Concern over longer sales cycles cuts '24e-'25e EBIT by 23%/12%
Fair value range lowered to SEK 110-150 (120-170)


Good Q4 to cap great 2023

We expect Eolus Vind to deliver a solid Q4 report, with net sales of SEK 403m and adj. EBIT of SEK 50m, for a margin of 12.0%. Our EBIT forecast implies a rise of 50% y-o-y and caps a great 2023, where we estimate that the company generated EBIT of SEK 714m, +788% y-o-y. We expect the Board of Directors to propose a SEK 3 per share dividend. However, we worry that the earnings level will normalise somewhat in '24-'25 due to continued long sales cycles in the market, as industrial buyers are dominating on the demand side, and these generally need longer time to make investment decisions compared to financial buyers.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/eolus-vind/Equity-research/2024/2/eolus-vind---longer-than-normal-sales-cycles/