Ambea (Buy, TP: SEK70.00) - Extending new openings pipeline
Ambea had a solid Q2, despite Covid-19 resulting in lower occupancy and longer ramp-ups of new units. New customer flow is already normalising, and we see occupancy recovering in H2e towards historical levels, implying a headwind, offset by delays in new openings. We have raised our 2020e EPS by 10%, but cut 2021–2022e by 4–9%. We see the >9.5% adj. EBITA margin target as realistic by 2022–2023 (7.4% LTM) as the own-managed pipeline matures. We reiterate our BUY but have trimmed our target price to SEK70 (73).Ambea AB (publ) is a Sweden-based holding company within the care provider group. The Ambea group offers accommodation, support, training and staffing within health and social care. The Group has over 450 units throughout Sweden and in Norway. The Swedish operations comprise the brands Vardaga, Lara and Bemanning. Among other brands, there are Rent a Doctor, Rent a Nurse, Rent a Socionom and Careteam, as well as BoA Mellanvard. The Norwegian operations comprise support and residential care in disabilities and psychiatry through the companies Heimta and Vitale. The Company's main shareholders are ACTR Holding Ab and Actor General Partner SARL Sweden SCA. It operates Malrettet Intervensjon AS, Elevhalsan, Stod och Resurs AB and Tiltaksgruppa fokus as subsidiaries.
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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