Vestum: ABGSC's Investor Days feedback - ABG

Positive growth outlook for margin-accretive Water segment...
...to drive margins towards target of 12%
9-6x EBITA '24e-'26e (11-16% FCF yields), ~30-40% below peers


Attractive growth opportunities in Water

Today, we hosted Vestum's CEO Simon Göthberg, at ABGSC's Investor Days. Mr. Göthberg shared a positive outlook on the growth prospects in the company's Water segment, where it is well-positioned to capitalise on needs for increased public investments in water infrastructure, in both the Nordics and the UK. Through its largest subsidiary, Pump Supplies (a company that has grown ~20% organically with ~20% EBITA margins over the last three years), Vestum holds a market leading position in the UK water pump market. In addition to solid organic growth potential, Mr. Göthberg also highlighted the opportunities for value-accretive bolt-on acquisitions in the UK market, which the company's reduced gearing should be able to facilitate relatively near-term. This, we believe could be positive for the story.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/vestum/Equity-research/2024/5/vestum---abgscs-investor-days-feedback/