Elektroimportøren continues to navigate a challenging market, but we find the Q3 adj. EBITDA beat encouraging, driven by improved profitability. We have upgraded to BUY (HOLD) and raised our target price to NOK14.5 (9.5) on positive estimate revisions, reduced financial risk and peer group multiples expansion.
We consider this a positive report for Elektroimportøren, including underlying figures above expectations due to improved profitability and revenue growth for Q4 so far. We expect 5% positive revisions to consensus 2024e adj. EBITDA and believe a positive share price reaction is warranted.
We reiterate our HOLD, but have cut our target price to NOK9.5 (10) on negative estimate revisions post the Q2 results, which were badly hit by weak gross margins. Although the company looks to be taking action to restore gross margins and increase revenues in Sweden, the earnings outlook remains subdued.
We consider this a mixed report for Elektroimportøren, including EBITDA below our expectation, with slightly higher than-expected sales hit by weak gross margins, but a slightly improved outlook with early signs of better demand. We expect consensus 2024e EBITDA to come down c3% and believe a neutral to slightly negative share price reaction is warranted.
Supported by cost initiatives, improved EV charger sales and slightly positive retail statistics, we expect an EBITDA recovery in Q2 YOY. We reiterate our HOLD and NOK10 target price, as we continue to find the earnings profile subdued.
Q1 earnings beat our forecast, as weaker revenues were offset by strong cost control. While the company has seen some signs of improvement QTD, the market remains challenging, with low consumer confidence and slow housing and EV markets. We reiterate our HOLD and NOK10 target price.
We consider this a slightly positive report for Elektroimportøren, with EBITDA above expectations despite slightly weaker revenues and a cautiously optimistic outlook. We expect consensus 2024e adj. EBITDA up 5% on the back of the report and believe a slightly positive share price reaction is warranted.
Elektroimportøren’s balance sheet has been strengthened following the recent private placement, and the structural growth trends remain, but we expect market headwinds to continue hurting the company near-term. We reinstate a recommendation with a HOLD and NOK10 target price.
Elektroimportøren has issued a profit warning stating it is at risk of breaching its NIBD/EBITDA covenant in Q1 2024 as the market has been weaker than expected since December. The company has initiated a dialogue with its bank to obtain a waiver or to refinance the existing facilities. We believe a negative share price reaction in the range of 10–20% is warranted, as we believe the risk of a new equity raise has increased if the company fails to reach an agreement with its bank.
We are positive ahead of the Q4 results, expecting EBITDA slightly above consensus, with early signals that the company is making progress on improving the performance of its Swedish store and that EV sales have started to recover. We still find the valuation attractive, and reiterate our BUY and NOK18 target price.
We consider this a mixed report for Elektroimportøren, including figures slightly below expectations, but with an improved revenue trend. We expect no significant changes to consensus 2023e EBITDA on the report and believe a neutral share price reaction is warranted.
Elektroimportøren’s share price is down c70% YTD as earnings have been hurt by a weak consumer backdrop, low EV charger sales, and a rough start to strategic initiatives such as the new Swedish stores and heating pumps. Although the consumer backdrop is set to remain challenging, we believe a bleak outlook is reflected in the share price and find the valuation attractive. We have upgraded to BUY (HOLD), and reiterate our NOK18 target price.
A tough market outlook, a significant drop in EV charger sales, soft Namron sales and margins, and a slow start for the Sweden expansion have challenged the profitability of Elektroimportøren’s business model. Although we find the company’s market valuation low, near-term multiples are high and we struggle to identify a rerating catalyst. We reinstate a recommendation with a HOLD and NOK18 target price.
Given DNB Markets’ role as Sole Global Coordinator and Bookrunner in the recent Private Placement and Manager in the contemplated subsequent offering of shares in Elektroimportøren ASA, we have withdrawn our target price and recommendation.
Elektroimportøren reported weak Q1 results and painted a cautious near-term outlook as consumer spending is under pressure and the company is struggling to shift volumes to new EV chargers following the Easee ban. We reiterate our HOLD but have lowered our target price to NOK36 (41) after cutting our 2023–2025e EBITDA.
We consider this a weak report for Elektroimportøren, including results below expectations, a cautious outlook, and a need for cost-cutting to protect profitability. We expect consensus 2023e EBITDA to fall 10% and believe a negative share price reaction is warranted.
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