AcadeMedia AB (Buy, TP: SEK63.00) - Solid Q4 headline numbers
Q4 continued AcadeMedia’s operational and financial strength, looking at its early release of headline numbers. We have raised our EPS forecasts by 2–3%. We see a solid demand outlook and an attractive valuation (FCF yield 2023/24e of 20% and 2024/25e of 23%) but a lack of catalysts, with its board doing little to counter ‘value trap’ concerns. We reiterate our BUY and SEK63 target price, suggesting no near-term multiples expansion.AcadeMedia AB is a Sweden-based holding company, which operates through its subsidiaries, primarily via AcadeMedia Group AB. It provides educational services and specializes in preschools, compulsory schools, upper secondary schools and adult education centers, among others. AcadeMedia Group AB has facilities all over Sweden, as well as preschools in Norway and Germany. Its brands include Framtidsgymnasiet, Hermods, Pysslingen, Plushogskolan, Espira, Vittra and NTI-gymnasiet, among others. The adult education sector is engaged in provision of various trainings, such as Swedish for Immigrants (SFI), Information Technology (IT), marketing and logistics, among others. AcadeMedia AB's main shareholders comprise Mellby Gard AB, Marvin Holding Ltd and Nordea Funds Ltd.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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