Svedbergs: A spotless champion - Nordea

Svedbergs Group has set the course to consolidate the European market for bathroom fittings, evolving from a Swedish-centric company to a prominent player in northern Europe. With roughly two-thirds of its sales now originating from outside of the Nordics, we argue that the company has mitigated end-market risks. Due to its large exposure to renovations (~85%), Svedbergs Group also looks set to exit the current construction downturn earlier than other building material firms that are more exposed to newbuilds. Given its latest margin-accretive acquisitions, the company's adjusted EBITA margin target of 15% appears within reach by the end of this year. We initiate coverage on Svedbergs Group and set our fair value range at SEK 41-60 per share, translating to 2025E EV/EBIT of 7.5-10.5x. Marketing material commissioned by Svedbergs Group.

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