Serial acquirers: M&A the main excitement

Cash flow to improve, tough market remains

Kambi (Buy, TP: SEK210.00) - Growth from Brazilian stake

Kambi’s recent signings (e.g. KTO and Stake) and opportunities in the newly regulated Brazilian market support our view of positive revenue growth in 2025–2026e. In addition, there is the potential for efficiency initiatives introduced by the new CEO, and we expect decent Q4 results, supported by a busy sports calendar and healthy sports margins in European football. We reiterate our BUY and SEK210 target price.

Europris (Buy, TP: NOK95.00) - Norway leading the way

Q4 earnings were above expectations on a strong performance by Norway, while Sweden was soft, primarily due to higher costs, reflecting the ongoing turnaround. We reiterate our BUY and have raised our target price to NOK95 (85) on minor positive estimate revisions. At our target price, Europris would be trading at a 2025e P/E of 15.5x adjusted for ÖoB (which we estimate could add >NOK1 to EPS by 2028).

Hexagon Composites (Buy, TP: NOK52.00) - Consensus too conservative on margins

We believe consensus is too conservative on realised margins; we are 8% above on Q4e EBITDA and 8–9% above on 2025–2026e EBITDA. We still consider X15N fuel system orders key for our investment case. We reiterate our BUY, but have cut our target price to NOK52 (54). We still view the stock as attractively valued at 2025–2026e EV/EBITDAs of 8.2–6.6x.