Basic-Fit Additional liquidity gives more headroom to grow

Yesterday we upgraded our recommendation from Hold to Accumulate after the announcement of the additional EUR 50m credit facility. In our previous model liquidity tightened with EUR 70m headroom by YE23, provided they request the syndicated banks to make the remaining EUR 30 million of the accordion facility available. By securing additional financing, headroom at year end is now above EUR 100m which is Basic-Fit's internal threshold. We see difficulties regarding access to funding for its growth story in a difficult banking environment as a key risk. By securing this facility we believe the risk is mitigated.

Since our downgrade mid-April from Buy to Hold, the share price has dropped approx. 8%. In the past month the stock underperformed the STX600 consumer product and services index by -2.3% vs. an outperformance of 23.8% YTD. As the share price is 12.7% below our TP of EUR 40.0 and we see less liquidity risk we upgrade from HOLD to ACCUMULATE.