8% EBIT on beat

Atea (Buy, TP: NOK180.00) - Buy ahead of 2024e upcycle

We have made only limited estimate revisions and are below consensus on EBIT for Q4 (tough comparables and a halted frame agreement in Denmark), while we are materially above consensus on 2024–2025e EBIT, as we expect an IT estate upgrade/refresh cycle from H2 2024 to benefit Atea. Furthermore, the stock continues to trade at an unwarranted discount to peers in our view, despite having appreciated towards the end of 2023. As such, we reiterate our BUY and NOK180 target price.

Atea (Buy, TP: NOK180.00) - Overall a relief

While Atea’s top line and earnings for Q3 were below our estimates and consensus, a higher gross margin than expected gives us cause for optimism. We have made only limited changes to our estimates and reiterate our BUY and NOK180 target price. In sum, we find the decent growth in gross profit and EBIT improvement YOY despite tough comparables a relief given the current macro backdrop and poor trading by peers, and consider the post-results share price reaction thus far overdone.

Microsoft Copilot to have general availability from November

Now that Microsoft has finally announced the general availability of Copilot for enterprises from November this year, we look at what it could entail for the first-line value-added resellers in our coverage universe, Atea and Crayon. In sum, if we assume Copilot achieves penetration of 5–15%, we estimate a gross profit tailwind of ~2–3% for Crayon and ~1% for Atea at a group level for 2024–2025.

Atea ASA: 1 director

A director at Atea ASA bought 140,000 shares at 136.830NOK and the significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly sh...

Atea (Buy, TP: NOK180.00) - Expecting a solid Q2

We have made only minor estimate revisions and are still significantly above consensus for Q2 and 2023–2025 earnings, expecting continued solid growth across Atea’s regions and service lines. While it is facing tough YOY comparables, we see no reason for Atea not to report continued underlying growth in operating profit in Q2. We have raised our target price to NOK180 (150) and we reiterate our BUY, considering Atea and its public sector exposure a good place to be amid global macro headwinds.

Atea - Strong growth over the next two quarters

Q3: Significant sales beat, but EBIT in line with cons. Raise ’22e-’23e EBIT by 1-2% Maintain BUY with new target price of NOK 136 (122)

Atea - Significant sales beat in Q3

Q3: 22.5% gross sales growth and 2.7% EBIT margin Solid growth across products and geographies Cons. ’22-23e EBIT to come up by 2-3%

Atea - Growth likely remained solid in Q3

Q3e: 5% gross sales growth and 4.1% EBIT margin We forecast 2% revenue growth in 2023 Maintain BUY with new target price of NOK 122 (170)

Nothern Ligths

Atea (Buy, TP: NOK150.00) - Just what we were looking for

Atea reported a solid Q2, with results a tad above our estimates. We have raised our 2022e EBIT and EPS by 2–4% and continue to see Atea as a relative safe haven in this macro environment, while also offering significant upside potential from multiples expansion. We reiterate our NOK150 target price and BUY.

Atea - EBIT 3% above cons

Q2 FX adj. sales +13.8% y-o-y, EBIT 3% above cons Continues to deliver strong underlying sales growth Cons ‘22e EBIT to come up by 1-2%

Atea - EBIT 5% below, but solid underlying growth

Q1 org. y-o-y sales +4.9%, EBIT -5% vs cons EBIT miss likely due to lower margins in NOR and DEN Cons ‘22e EBIT to come down 1-2%

ATEA increases its risk exposure and slightly lowers to Neutral

ATEA (NO), a company active in the Computer Services industry, now shows a lower overall rating. The independent financial analyst theScreener confirms the fundamental rating of 2 out of 4 stars. However, the market behaviour deterioration triggered a risk requalification, which can be thus described as moderately risky. theScreener believes that increased risk justifies the general evaluation downgrade to Neutral. As of the analysis date February 25, 2022, the closing price was NOK 132.00 and i...

Atea (Buy, TP: NOK190.00) - Not great, but still ok

While Q4 missed estimates significantly as costs rose faster than expected, we see the ~5% reporting day decline in Atea’s share price (having already dropped sharply before the report) as an overreaction. We reiterate our BUY but have cut our target price to NOK190 (195).

Atea - Soft end to a strong year

Q4’21: Adj. EBIT of NOK 389, -10% vs. consensus Start of 2022 likely soft but Q2 and beyond look good EBIT to see further uplift as things normalise

Atea - Adj. EBIT 2% shy of consensus in Q4

Adj. EBIT was 2% below cons driven by higher opex DPS NOK 5.5 for 2021 vs. cons at NOK 6.3 Cons ’22e EBIT down 1-2% after today

Atea - Tough growth comps vs. strong Q4 last year

Q4’21: hardware remains tough but Atea will manage Denmark a real kicker on EBIT; software looks good Attractive valuation and risk/reward – reiterate BUY

Atea (Buy, TP: NOK195.00) - Continues to look attractive

We have made limited changes to our estimates ahead of the Q4 results and still expect the stock to benefit from the company’s continued revival in Denmark, margin expansion and solid payout capacity. We reiterate our BUY and NOK195 target price.

Atea (Buy, TP: NOK195.00) - Coping well with supply chain

Atea reported solid Q3 results, above our estimates and consensus. It is coping well with the ongoing supply chain issues and is seemingly set for a strong year-end despite the supply hurdles. As such, we have raised our estimates, while we reiterate our BUY and NOK195 target price.