Byggfakta Group (Buy, TP: SEK47.00) - Closer to a trough in growth
Despite concerns about pullbacks in construction customer budgets, high gearing, and low liquidity in the stock, Bloomberg consensus adj. EBITDA forecasts have dropped only ~8% since its IPO. Q2 was the fifth consecutive quarter with Byggfakta defying weaker end-market concerns. We still see an undemanding valuation at a 2023e P/E adjusted for M&A amortisation of 14x and a 0.9x P/B ratio, especially as we should near a trough in Byggfakta’s mid-single digit organic growth, while its October CMD could offer further assurance. We reiterate our BUY, but have cut our target price to SEK47 (50).
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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