StrongPoint: Challenging market, but Baltics provide comfort - ABG

Q3e revenue ~NOK 312m
Maxima order provides comfort for '24e, but more orders needed
Estimates down, '23e adj. P/E ~25x


Q3e: Orders being pushed out

We expect StrongPoint to report Q3 revenues of ~NOK 312m, marking a 10% decline from Q3'22. The trend of customers holding back continues: orders anticipated for Q3e have been pushed to Q4e or even early 2024e. The M&A lift seen in Q2 will not be present in Q3e, i.e. organic growth is the key driver, which we expect down ~10% y-o-y. The gross margin for the quarter is likely to hover around 39%, a minor improvement from 37% in Q3'22. We are forecasting Q3e EBITDA at around NOK 5m, a drop from NOK 21m in Q3'22. We anticipate Q3e EBIT and net profit at ~NOK -6m each, with net finance being balanced out by tax gains.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/StrongPoint/Equity-research/2023/10/strongpoint---challenging-market-but-baltics-provide-comfort/