StrongPoint: Ready for margin rebound - ABG

Q4 de-risks 2023 estimates
Strategy update: 2025 targets reiterated
'23e adj. P/E ~16x, DCF points to NOK 36-96/share


Q4 numbers above expectations, and 2025 targets reiterated

StrongPoint reported better Q4 results than expected with EBITDA of NOK 33.6m, +14.4m (74%) above FactSet consensus, and reiterated its 2025 strategic targets (NOK 2.5bn sales, 13-15% EBITDA margin) at its Strategy Update Session. The key deviations were: significantly higher revenues in ALS (NOK 101m, +124% vs our 45m) as well as better opex levels (+3m) on the back of lower e-com investments. On the back of the better numbers in Q4, we make small positive estimate changes ('23e-'24e EBIT +3%), but even more importantly: the performance materially de-risks the 2023 estimates.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/StrongPoint/Equity-research/2023/2/strongpoint---ready-for-margin-rebound/