Sinch beat consensus on Q4 EBITDA and cash flow. As the deviation to our forecasts was lower, we have made limited estimate revisions. We have also included a cash payment of the SEK700m tax provision, resulting in lower cash flow in 2025–2026e. We reiterate our BUY and SEK33 target price.
2024 was a year of transformation to a new organisational structure. Sinch saw muted growth, and we expect similar in the Q4 report. With consensus cautious and share buy-backs potentially announced, we still see a positive risk/reward. We reiterate our BUY and SEK33 target price.
Adjusted for a one-off, organic gross profit growth disappointed and the outlook for Q4 and the start of 2025 remains weak. We still see a strong underlying market and reiterate our BUY due to an attractive valuation. We have lowered our target price to SEK33 (37).
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