Solwers: One-offs burden H1, set for M&A-driven growth - Nordea

Solwers posted H1 revenue 3% ahead of our estimate, as organic growth was slightly positive, while we had expected a slight decline. H1 EBIT of EUR 2.0m came in 27% below our estimate of EUR 2.7m; almost half of the negative deviation was explained by one-offs from e.g. higher contingent considerations from previously completed acquisitions, as well as costs related to preparation for its possible transfer to the main list of Nasdaq Helsinki. After the H1 report, we raise our top-line estimates for 2024-26 by 2-4%, but cut our adjusted EBIT estimates by 7-8%, as we forecast a somewhat slower recovery in profitability. Consequently, our DCF- and peer-based fair value range is trimmed to EUR 4.8-5.7 (5.1-6.0), which includes EUR 0.7 per share in present value of unannounced acquisitions. We believe Solwers will continue with its M&A-driven strategy and see further margin improvement potential once the market recovers. Marketing material commissioned by Solwers.

Länk till analysen i sin helhet: https://research.nordea.com/api/reportfileapi?id=958841