Urb-it - Sales guidance upgrade - ABG

Background on guidance upgrade
During the week, Urb-it announced a few last-mile delivery partnerships in key geographic areas, namely with Evri and Zara. These partnerships would be beneficial to Urb-it, not only in the long term but also in Q4'22, under the circumstance that they are associated with a relatively short ramp-up period as well as a sufficiently lucrative price per parcel delivery. Following these announcements, the company upgraded guidance today for Q4'22 from SEK 11.5m to 14m, which is in line with our previous estimate of 14.4m. On the cost side, however, the company has indicated that costs will increase due to the Zara partnership.

SEK 196m from rights issue and implied valuation
Today, the company also announced the outcome of the rights issue. Approximately 54% of the rights issue was subscribed with and without subscription rights, and a corresponding 46% of the rights issue was underwritten. Regardless, the company will now have cash to maintain its long-term strategy. Finally, the '23e P/sales multiple implied by the rights issue (i.e., post-money valuation) is 2.1x based on our unrevised estimates.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/urb-it/Equity-research/2022/12/urb-it---sales-guidance-upgrade/#