Össur: Growth'27 targets 7-10% annual LCY growth - ABG

Solid growth ambitions released ahead of CMD tomorrowFY'23 guidance reiterated, as expectedOverall, share likely to trade up tomorrow5y LYC growth target of 7-10% vs Cons for FY'24+25 at ~6.6%Prior to hosting its Capital Markets Day, tomorrow from 08:00-13:00 CET, the company has announced the introduction of its "Growth'27" strategy, which aim to deliver an annual average local currency growth of 7-10% over the next five years (the latest company collected consensus expect an LCY growth in FY'24+25 ~6.6%). The growth will come from 5-7% organic growth (historically around 3-5%) and an acquisitive growth of 2-3% (in line with recent years). The organic and acquisitive growth drivers will be outlined during the CMD.New sales segmentation indicate increased focus on patient careHowever, based on the fact that the company is introducing a new sales segment split, namely including "patient care", to supplement its prosthetics and bracing and support segments, we expect a large part of the future growth drivers will be focused around more "patient centric" or service related elements, which could support an argument, that the company might also provide an improved five-year outlook on the EBITDA margin, which has been stagnated in recent years around 18-21%. However, no indication on the five-year EBITDA margin target has not provided in the announcement this evening.Assuming stable margins, cons FY'24+25 EPS likely up ~5-8%Overall, based on the better than consensus expected LCY growth target for the next five years and assuming a stable margin development, despite the increased focus on patient care could support higher margins, we expect cons. FY''24+25 EPS to increase by 5-8%.Läs mer på ABG Sundal Collier

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