Fortnox (Buy, TP: SEK67.00) - Defensive high-growth exposure
We expect strong Q2 results, with organic growth accelerating, driving 31% net sales growth YOY and a 34% EBIT margin. Despite recession concerns, we still expect a sustainable 30%+ net sales CAGR to 2025e as: 1) Fortnox’s software is the foundation for the day-to-day financial workflows for a diversified customer base of 441k Swedish SMEs; 2) its customers pay a small fee of ~SEK200/month, and c70% have recurring subscriptions, where we see an untapped potential for further price increases; and 3) upselling opportunities are at an early stage. We reiterate our BUY but cut our target price to SEK67 (77).
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.