Prevas: Solid demand picture to continue in Q2 - ABG

9% organic growth expected in Q2
Slight increase in estimates from M&A
Seamless CEO transition


Q2e: Sales +17% y-o-y and EBITA margin of 9.8% (10.4%)

We think the trend from Q1 is set to continue in Q2, where lower demand from a few customers is more than offset by ongoing development needs among other customers, primarily in areas such as automation, product development, electrification and sustainability efforts. The market conditions still look solid for technological consultants, which further strengthens this view. For Q2 we expect sales growth of 17% y-o-y, of which 9% organic. We think the EBITA margin will be lower y-o-y (9.8% vs 10.4% last year) mainly because of negative calendar effects. Apart from the direct financial results Prevas has also changed CEO during the quarter, with Magnus Welén taking over after Johan Strid from 1 June. The news was a bit surprising to us but Mr. Strid will remain with the company as a board member, and we think Mr. Welén has a relevant background within the industry and made a good first impression during our Investor Day in May.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/prevas/Equity-research/2023/7/prevas---solid-demand-picture-to-continue-in-q2/