Proact: Well positioned for growing demand - ABG

Significant Q1 EBITA beat and comps are getting easier from Q2
Intensified key partnerships and support from cybersecurity/cloud/AI
EBITA +5-12% in '24e-'25e, share trades at 7.3x 2024e EV/EBITA


Increased growth support ahead

Not only are comps getting easier from Q2e, but demand seems to have stabilised and is increasing in key markets like Germany, according to Proact. The Q1 cloud order intake was impressive, up 57% y-o-y, in a seasonally somewhat softer quarter and provides further support for growth ahead. The intensified partnerships with both NetApp and Microsoft, as well as a seemingly strong position with Broadcom/VMware, are also factors that we find positive and positions Proact as a preferred value-added re-seller among many customers. The comp profile will also ease ahead, as Proact will face three negative growth comps in Q2-Q4e. Below the solid top line and good growth prospects, Q1 surprised positively with a strong gross margin, driven by some high margin deals, but also an improved service gross margin thanks to cost reductions in 2023.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/proact/Equity-research/2024/5/proact---well-positioned-for-growing-demand/