Storytel (Buy, TP: SEK81.00) - Upside potential to 2024 targets

Q1 saw sustained double-digit organic revenue growth, margin expansion across all P&L lines and healthy cash generation. Storytel exhibited flywheel dynamics, with solid net adds, a growing share of internal content consumption, higher engagement and retention, and improved customer acquisition efficiency. It continues to re-establish its industry-innovator perception with its popular AI VoiceSwitcher. While investors would prefer a clear main shareholder to trigger a re-rating, from an operational standpoint, we have increased our 2024–2025e adj. EBITDA by 9–8% and reiterate our BUY with a ra...

Higher conviction after strong Q1

Q1 was essentially in line with our expectations and reinforced the attractive earnings outlook. BUY: Storytel remains on track and the valuation is too low.

Q1: encouraging subs development

Sweco (Buy, TP: SEK170.00) - Billing ratio set to improve

Going forward, we expect Sweco to more quickly reverse the negative billing ratio given the large-scale actions taken, and for profitability to see more support from cost-cutting, accelerated efficiency improvements and a leaner organisation. We reiterate our BUY and have increased our target price to SEK170 (137).

Equity raise, two more Q1 reports

This week, Nyfosa raised SEK1.7bn in equity, and Citycon and Olav Thon reported their Q1 results. Real estate stocks have performed well globally since the latest US CPI print. The weighted-average implied EBITDA yields on the stocks we cover are 4.32% for 2024e and 4.71% for 2025e.

Tokmanni (Buy, TP: EUR16.00) - Several hiccups

Following weaker-than-expected underlying Q1 performance, including sluggish key LFL KPIs and a higher fixed cost base, we have cut our 2024–2026e EPS by c6% on average. We reiterate our BUY but have reduced our target price to EUR16 (17).