Raketech: Two acquisitions and likely more to come - Nordea

We believe Q2 2021 will be strong and forecast 20% y/y growth (18% organic), with 18% adjusted EBITDA growth. This is the first quarter in which the strong growth in the Lead Republik acquisition will count as organic growth. We find it positive that Raketech is putting its strong cash position to use with two more sports betting acquisitions, one in the US and one focused on India, which add ~20% to 2021 EBITDA and take Raketech's non-Nordic revenues to ~45% of the total with >10% from the US and 5-10% from India. This improves Raketech's growth profile considerably. After these acquisitions, Raketech's net debt/EBITDA stands at 0x on 2021E, and we see scope for more significant M&A in 2022. We adjust our DCF- and multiple-based fair value range to SEK 21.5-34.8 (20.6-33.6). Marketing material commissioned by Raketech Group Holding.

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