DnB Markets - Momentum Group (MMGR B) Alligo (Buy, TP: SEK145.00) - ‘Self-help’ providing support

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DnB Markets

Karl-Johan Bonnevier

EUR 463.52 For Business Accounts Only

Alligo (Buy, TP: SEK145.00) - ‘Self-help’ providing support

Alligo reported a stronger than expected Q2, even as market demand appears to be slowing. Near-term, the company is preparing for a weaker Nordic market, but it highlighted its legacy of taking market share during tougher periods, and we believe it is well positioned to face coming challenges. We still view Alligo’s EBITA margin target of >10% as ambitious but realistic. We see an attractive business-improvement case, and reiterate our BUY and SEK145 target price.

19/07/2023 1 EN

Underlying

Momentum Group

Momentum Group Ab. Momentum Group AB is a Sweden-based reseller of industrial consumables and components, as well as service and maintenance to professional end users in the industrial and construction sectors in Sweden, Norway and Finland. The Company comprises six operating areas, which are organized under two business areas: Tools & Consumables and Components & Services. The Tools & Consumables business area comprises TOOLS Sweden, TOOLS Norway, TOOLS Finland and Mercus Yrkesklader. The business has focus on the sale of tools, personal protective equipment and other consumables to the industrial and construction markets. The network consists of 120 local sales outlets in Sweden, Norway and Finland. The Components & Services business area comprises Momentum Industrial and Gigant, which focus on the sale of spare parts for production and workplace equipment mainly to customers within industrial sector.

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SE0009922305 Nasdaq Nordic Stockholm Sweden

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

Karl-Johan Bonnevier

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Alligo (Buy, TP: SEK145.00) - ‘Self-help’ providing support

Alligo (Buy, TP: SEK180.00) - Happy to put Q1 behind us

Alligo (Buy, TP: SEK180.00) - Ready to press accelerator

Momentum Group AB: 1 director

Tokmanni (Buy, TP: EUR17.00) - Q1e hurt by external setbacks

Alligator Bioscience (Buy, TP: SEK1.10) - OPTIMIZE-1 needs more patients

Otovo (No_rec, TP: NOK) - Clouds still on the horizon

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