New Wave Group (Buy, TP: SEK126.00) - Continued short-term pain in Q3

New Wave Group performed relatively well in Q3 against a still-weak retail backdrop, but future growth initiatives continued to burden short-term results, with Q3 EBIT 15% below our forecast. We have cut our 2024–2026e EPS by 12–4%. Strong FCF and financials suggest the company has ample resources to drive its organic initiatives, potential M&A, and shareholder-friendly capital allocations. We reiterate our BUY, but have reduced our target price to SEK126 (130).

New Wave Group (Buy, TP: SEK130.00) - Craft teamwear North America

New Wave Group continued to perform well in Q2 against a weak retail backdrop, returning to organic growth, albeit profit burdened by growth initiatives (Craft teamwear North America added). Further market share gains have allowed the earlier phasing of growth investments; as a result, we have trimmed our 2024–2026e EPS by 6–2%. Strong financials suggest it has ample resources to drive its organic initiatives, potential M&A and shareholder-friendly capital allocations. We reiterate our BUY, and ...

New Wave Group (Buy, TP: SEK120.00) - Second-half weighted 2024e

New Wave Group continued to perform well against a weak retail backdrop, but with solidly higher negative earnings leverage than forecast. We see continued market share gains; however, allowing for a higher fixed cost base, we have reduced our 2024–2026e EPS by 4–6%. Its strong financials suggest it has ample resources to drive its organic initiatives, potential M&A and shareholder-friendly capital allocation. We reiterate our BUY but have lowered our target price to SEK120 (125).

New Wave Group (Buy, TP: SEK125.00) - Continued solid delivery

New Wave Group continued to perform well against a weak retail backdrop, with strong profit margins and FCF in Q4. We see continued market share gains; however, allowing for slightly less supportive FX and new growth initiatives, we have reduced our 2024–2026e EPS by 3–5%. Its strong financials suggest it has ample resources to drive its organic initiatives, potential M&A and shareholder-friendly capital allocation. We reiterate our BUY and have raised our target price to SEK125 (115).

New Wave Group (Buy, TP: SEK115.00) - Gaining share in a weak market

New Wave Group continued to perform well against a weak retail backdrop, matching Q3 expectations. We see continued market share gains; however, allowing for slightly less supportive FX and new growth initiatives, we have reduced our 2023–2025e EPS by 4–5%. Its strong financials suggest it has ample resources to drive organic initiatives and potential M&A. We reiterate our BUY but have lowered our target price to SEK115 (121).

New Wave Group (Buy, TP: SEK121.00) - Adding new growth platforms

After beating estimates for eight straight quarters, New Wave Group did not match the high expectations for Q2, but still reported 14% revenue growth YOY and a 15.8% EBIT margin against a weak retail backdrop. We have cut our 2023–2025e EPS by 3–5%, still seeing continued market share gains in a challenging macro environment, and believe the company has added a new growth platform with the acquisition of outdoor brand Tenson. Its strong financials suggest it has the resources to drive organic in...

Northern Lights

New Wave Group (Buy, TP: SEK260.00) - Strong execution = record Q1

New Wave Group continued to defy a weak retail backdrop in Q1, with 20% revenue growth YOY and an expanding EBIT margin. We have raised our 2023–2025e EPS by 4–5%, still seeing continued market-share gains in a challenging macro environment, some margin pressure on new growth initiatives and supportive FX. Its strong financials suggest it has the resources to drive organic initiatives and potential M&A. We reiterate our BUY and have raised our target price to SEK260 (255).

Northern Lights

New Wave Group (Buy, TP: SEK255.00) - Looking for new growth sources

New Wave Group continued to defy a weak retail backdrop in Q4, with 22% revenue growth YOY and an expanding EBIT margin. We have only tweaked our 2023–2025e EPS, still seeing continued market-share gains in a challenging macro environment, some margin pressure on new growth initiatives and supportive FX. Its strong financials suggest it has the resources to drive organic initiatives and potential M&A. We reiterate our BUY and have raised our target price to SEK255 (240).

Northern Lights

New Wave Group (Buy, TP: SEK240.00) - Back in acquisition mode

We continue to see strong earnings-revision momentum, with 34% revenue growth and an expanding EBIT margin in Q3, while we have raised our 2022–2024e EPS by 10–7% on the company’s return to M&A and supportive FX. In a more challenging underlying market New Wave Group is taking market share, offering good momentum. We reiterate our BUY and have raised our target price to SEK240 (225); its strong financials suggest it has the resources to drive organic initiatives and potential M&A.

Northern Lights

New Wave Group (Buy, TP: SEK225.00) - Strong momentum continues

We continue to see strong earnings-revision momentum, with 36% revenue growth and an expanding EBIT margin in Q2. All divisions and regions contributed, suggesting New Wave Group is taking market share despite more challenging underlying conditions. We reiterate our BUY and have raised our target price to SEK225 (215), with record-strong financials suggesting the company has the resources to drive further organic growth initiatives and potentially return to M&A mode.

Northern Lights

New Wave Group (Buy, TP: SEK215.00) - Another quarterly beat

The company continues to see strong earnings revision momentum, with Q1 bringing 41% revenue growth and expanding EBIT margins, plus all areas and geographies now contributing post-pandemic and taking market share. We reiterate our BUY and have raised our target price to SEK215 (200), with record-strong financials indicating resources to drive further organic growth initiatives and potentially return to M&A mode.

New Wave Group - Initiation of coverage - Impressive owner-driven mode...

We initiate coverage of New Wave Group with a BUY and SEK200 target price. We see a strong founder-/ entrepreneur-driven company, well-placed to take advantage of favourable consumer trends and spending patterns, having further cemented its positions during the pandemic. With record-strong financials, we believe it has the resources to drive further organic growth initiatives and potentially return to M&A mode, with our value gap analysis implying potential in all drivers.