Report
Ebba Bjorklid
EUR 864.53 For Business Accounts Only

Looking good

We initiate coverage with a BUY and SEK385 target price. Lyko sees a promising outlook, and we believe it is poised to benefit from structurally higher growth, margins and cash flow, supported by more favourable sector and company-specific dynamics. With the stock trading at a 2022e EV/sales of 2.0x, we see scope for a re-rating.
Underlyings
Boozt AB

Boozt AB is a Sweden-based company engaged in the provision of e-commerce solutions for the apparel industry. The Company offers customized e-commerce software and services that create e-commerce platforms, namely Boozt.com and its mono-brand stores, that are fully hosted and managed. Its software includes Propilot, a Web shop management administration system that enables changes to Web shop content; Podium, a front end module which ensures optimized user experience for users on mobile devices; Fastlane, a warehouse management system (WMS) that runs fulfillment processes in warehouses and integrates them with distribution partners; CS Eye, a customer overview service; and Brand Portal, a business intelligence (BI) service suite. Its services include the development of an initial strategy, building an online shop, fulfilling orders, handling returns, running ongoing campaigns and acquiring and retaining customers.

Lyko Group

Lyko Group AB (publ) is a Sweden-based care and beauty company. It offers a range of hair care and beauty products through websites Lyko.se and Lyko.no, as well as through store chain in Sweden and Norway. The Company operates within segments Lyko Online, which comprises e-commerce activities, and Lyko Retail, which includes sales through physical stores. The product range primarily comprises shampoos, styling and makeup products of such brands as Aesop, Maria Akerberg, Peter Thomas Roth, Bumble & Bumble, Oribe, Mason Pearson, Elizabeth Arden Pro and Image, among others. Also, the Company conducts salon activities in its stores as well as under the brand Lyko Concept. The Company's main shareholders comprise Lyko family, as well as Fidelio Capital.

NELLY GROUP AB

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Ebba Bjorklid

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