Fortnox (Buy, TP: SEK77.00) - Moving up a gear
The Q1 results demonstrated the inherent scalability of Fortnox’s business model, as accelerating organic revenue growth of 24% YOY translated into 45% EBIT drop-through to set up a 22% adj. EBIT beat to Bloomberg consensus. We expect EPS growth to accelerate to ~50% YOY in H2, with a tailwind from recent ~10% price hikes, which could offer more positive surprises and prolong the positive EPS revisions trend. We have raised our 2022–2023e adj. EBIT by 5–3%, and reiterate our BUY and SEK77 target price.Fortnox AB is a Sweden-based company, which offers Internet-based business applications for companies, associations, as well as accounting and auditing firms. The Company's product portfolio includes programs for accounting, billing, sales support and payroll, such as Fortnox Accounting, Fortnox Invoicing, Fortnox order, Fortnox Archive, Fortnox Time and Fortnox CRM, as well as other programs. The Company's services allow its users to access the applications thorugh the Internet and be logged in simultaneously from multiple locations. As of December 31, 2011, the Company's three largest shareholders were Karlo Forvaltnings AB (10.45%), Banque Ohman S.A. (6.45%) and Nordea Life & Pensions (5.8%).
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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