Pricer: Updated targets support margin-lift ahead - ABG

Pricer has updated its financial targets
Sales +15% p.a. or in line with the market, and >8% EBIT margin
The new targets reflect Pricers recent efforts to restore margins


15% sales growth per year, and >8% EBIT margin

Pricer has announced updated targets: 1) annual sales growth should be in line with the market or at least 15% (previously, it targeted 2025 sales of SEK 4.5bn, i.e. a ’21-’25 CAGR of 26%), and 2) EBIT margin of >8% (no previous target). The announcement reflects the company's recent efforts to restore profitability, which includes cost savings of ~SEK 50m per year (~10% of 2023 adj. opex) that will be fully fruitful as of Q3'24. In our view, the updated sales target was relatively expected as we see a ’23-‘26e sales CAGR of 12% (i.e. below the previous implicit growth target), though we note that the new target could suggest some upside to our assumptions. Looking at the new EBIT margin target, however, the >8% metric exceeds our expected margin of 6% at the end of our forecast period; in ‘26e.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/pricer/Equity-research/2024/3/pricer---updated-targets-support-margin-lift-ahead/