DnB Markets - Kindred Group plc Shs Swedish Depository Receipts (KIND SDB) Kindred Group (Hold, TP: SEK130.00) - And the winners are… the French?

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DnB Markets

Martin Arnell

EUR 92.37 For Business Accounts Only

Kindred Group (Hold, TP: SEK130.00) - And the winners are… the French?

Although we consider Paris-listed FDJ’s proposed cash offer unattractive, not reflecting Kindred’s true earnings potential (2025e EV/EBIT of 8x), we have downgraded to HOLD (BUY) and lowered our target price to SEK130, in line with the proposed bid (base case). At the same time, we do not rule out a strong medium-term outlook and 2024 earnings that could prompt a scenario where FDJ must raise its proposed bid to secure the necessary acceptance rate from Kindred’s shareholders.

19/04/2024 1 EN

Underlying

Kindred Group plc Shs Swedish Depository Receipts

Kindred Group is an online gaming operating group based in Malta. Co.'s business is structured around sports betting, casino, poker, bingo and soft games. A choice of these products is available to players via websites in 27 different languages. Co.'s sports betting service offers a comprehensive range of odds on a variety of international and local sports events. Co.'s sportsbook portfolio consists of fixed odds pre-game and live betting as well as pool betting products Supertoto and Superscore. Co.'s Unibet Casino is an online system that connects players with table games as well as slots and jackpot games. Co. maintains over 7.2 million registered customers in more than 100 countries.

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SE0007871645 Nasdaq Nordic Stockholm United Kingdom

Provider

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.

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Analysts

Martin Arnell

Other Reports on these Companies

ABG Sundal Collier

Limited surprises

Q1 was slightly above expectations but triggers limited revisions. Potential NL deposit limits could hurt Kindred as market leader. Keep HOLD on neutral risk-reward with SEK 130 cash offer.

April 29, 2024 April 29, 2024 1 EN

DnB Markets

Kindred Group (Buy, TP: SEK145.00) - We believe the pressure is healthy

We expect sizeable Q4 earnings growth (adj. EBITDA up >35% YOY) thanks to easy comparables and stricter cost control. We are attracted to the possible key upcoming catalysts: 1) a potential business combination with a third party (based on the board’s communication); and/or 2) interim management pushing hard to maximise 2024e earnings (ambition of 25% adj. EBITDA growth YOY). We reiterate our BUY and SEK145 target price.

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January 11, 2024 January 11, 2024 1 EN

Sinch (Buy, TP: SEK52.00) - New reporting structure implemented

With a new reporting structure, focus will be on headline numbers (the Q1 report is due at 07:30 CET on 7 May). We forecast 6% organic gross profit growth YOY, and we believe this is about in line with consensus. We reiterate our BUY and SEK52 target price.

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May 1, 2024 May 1, 2024 1 EN

Stefan Gauffin

Stefan Gauffin

Truecaller (Buy, TP: SEK46.00) - Facing easy comparables in Q1

We believe our Q1 revenue assumptions could prove conservative (results due at 07:30 CET on 7 May), but we are still 3% above consensus on sales and 5% above on EBITDA. We reiterate our BUY and have raised our target price to SEK46 (40) on higher peer multiples.

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May 1, 2024 May 1, 2024 1 EN

Jørgen Lian

Jørgen Lian

Safe Bulkers Minor model adjustments

We have updated our estimates, owing to the Q1 report and its updated contract backlog at healthy rates providing visibility on cash flows for the coming quarters. The market is still pricing Safe Bulkers at c50% of NAV, which screens at a noticeable discount to peers’ average P/NAV of ~0.8x. This, along with its contract portfolio, continues to provide relatively attractive exposure to the dry bulk segment, despite potential downside risk to demand on fundamental drivers in China (importer of ~50% of all volumes). We do not consider these changes to be material, and we have not changed our BU...

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May 1, 2024 May 1, 2024 1 EN

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Kindred Group (Hold, TP: SEK130.00) - And the winners are… the French?

Limited surprises

Kindred Group (Buy, TP: SEK145.00) - We believe the pressure is healthy

Sinch (Buy, TP: SEK52.00) - New reporting structure implemented

Truecaller (Buy, TP: SEK46.00) - Facing easy comparables in Q1

Safe Bulkers Minor model adjustments

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