Crayon (Hold, TP: NOK110.00) - Working capital headwinds likely a lid on multiples near-term
While Crayon continued to demonstrate standout growth in gross profit in Q4, working capital headwinds and increasing debt servicing costs left us less upbeat on the quarter. As a result, while our adj. EBITDA estimates are unchanged, we have lowered our 2023–2024e adj. EPS by ~11–12%. Furthermore, with the market’s heightened focus on the bottom line and cash flow, we believe Crayon has to prove itself on both before achieving the premium multiple its growth trajectory might otherwise allow. We have therefore cut our target price to NOK110 (160) and downgraded to HOLD (BUY).
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.