Relais Group Oyj: Waiting for further M&A actions - Nordea

Relais reported H1 EBITA of EUR 12.2m, slightly below our expectations. The company has clearly outgrown its target market, however, and faces a solid M&A pipeline going forward. Recent acquisitions are being integrated according to plan ahead of the seasonally important H2 with strong lighting sales. Synergies should be fully visible within the next 24 months and the company is clearly upping its M&A pace, recently hiring a head of acquisitions and business development. We expect the strong growth story to continue – we estimate 8% organic growth y/y for H2 and would not be surprised to see more M&A. We derive a fair value range of EUR 20.7-25.3 (20.8-25.4) per share. Marketing material commissioned by Relais Group Oyj.

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