EKOPAK: Sailing on the blue wave EKOP BB

We believe Ekopak is well-positioned to sail on the blue wave of circular water usage, which is propelled by strong environmental and regulatory tailwinds. Starting from the solid foundation of its traditional solutions and a portfolio of blue-chip customers, the company is preparing to catch the next wave forward (towards more international waters also). Setting itself apart further from competitors in Europe, its new, high-margin WaaS (Water-as-a-Service) model provides a highly promising vessel to do so in our view. Based on our upper bound DCF scenario and EV/Sales transaction multiple valuation, we obtain a fair value estimate of € 18.5 ps. Although the market has already priced in a sizable share of future growth with an excellent performance of 25% after the IPO, we initiate coverage with an Accumulate rating based on 6% remaining upside in addition to the not yet factored in but promising iServ acquisition (as well as some remaining potential triggers).