DnB Markets - Momentum Group (MMGR B) Alligo (Buy, TP: SEK180.00) - Geared for 2025–2026e recovery

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DnB Markets

Karl-Johan Bonnevier

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Alligo (Buy, TP: SEK180.00) - Geared for 2025–2026e recovery

Mixed Q2 results showed the business model is far from immune to weak markets, but now more integrated and enhanced, we believe it positions Alligo for profitable growth when demand recovers. We find its >10% EBITA margin target ambitious but achievable in 2025–2026, as demand recovers, and see an industrial roll-up case evolving with recent acquisitions at attractive valuations. We reiterate our BUY and SEK180 target price.

18/07/2024 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: SEK180.00) - Geared for 2025–2026e recovery

Momentum Group AB: 1 director

Alligo (Buy, TP: SEK175.00) - Tough (and “frustrating”) Q3

Edda Wind (Buy, TP: NOK30.00) - Well positioned

Valuation and market update

Petrobras FPSO delays may hit service volumes but lengthen cycle

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