Storytel (Buy, TP: SEK145.00) - Noisy quarter in a ‘show-me’ story
Storytel’s Q1 results were the first since its IFRS accounting transition, which took some time to digest. We have lowered our underlying 2022–2023 streaming revenue forecasts by 2–4%, factoring in a more disciplined expansion, and believe the stock should bottom out on: 1) a trough in negative estimate revisions; 2) further clarity on funding needs (we include a SEK1bn recapitalisation); and 3) greater confidence in its path towards profitability over the coming quarters. We reiterate our BUY, but have cut our target price to SEK145 (170), as we note Storytel’s challenges but believe they are more than discounted in its depressed share price.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.