Multiconsult (Buy, TP: NOK160.00) - On course for Q1e consensus beat

While Easter falling in Q1 is set to lead to a YOY EBIT drop on fewer working days, we expect a consensus beat, assuming a continuation of Q4’s high billing ratio. With property markets still weak, the recent EPBD revision is likely to represent a long-term boost for the company. We reiterate our BUY and NOK160 target price.

Multiconsult (Buy, TP: NOK160.00) - Operationally leveraged Q4 beat

With a Q4 billing ratio of 71.8%, its highest ever in a Q4, Multiconsult beat our forecast and consensus. In addition, FTEs rose by more than we expected. EPS was far above our forecast, due to a financial one-off. We have increased our 2024–2026e revenues’ and EPS on the solid KPIs (FTEs and billing ratio). We reiterate our BUY and have raised our target price to NOK160 (155).

Multiconsult (Buy, TP: NOK155.00) - Bolting on

Since the Q3 results and our last update, Multiconsult has announced four minor bolt-on M&A deals. While all small, in sum they add c1.1% to the FTEs at end-Q3, and with higher estimates on key KPIs, we have raised our 2024–2025e revenues by c1%. We are in line with the thin Bloomberg consensus ahead of the results, due at c07:00 CET on 6 February. We continue to find the growth and valuation attractive, and reiterate our BUY and NOK155 target price based on minor estimate revisions and an updat...

Multiconsult (Buy, TP: NOK155.00) - Low-season miss for the right reas...

Q3 was weaker than expected, with the company preparing for continued growth with 225 new hires needing onboarding and training. Given Q3 is also low-season, the percentage deviations were large, but low relative to annual group profit. We continue to expect growth, albeit slowing, but believe valuation remains attractive. Thus we reiterate our BUY, but have cut our target price to NOK155 (170) on updated valuation.

Multiconsult (Buy, TP: NOK175.00) - One-off adjustments to Q3e EBIT

After accounting for a one-off that boosted Q3 2022 EBIT and a likely high number of new hires in Q3 this year, we have reduced our Q3e EBIT to NOK38m (Prev 54m), but our revenues are largely unchanged. We are below Bloomberg consensus on Q3e revenue, EBIT, and EPS, which we expect to be reduced ahead of the Q3 results as it is updated for the Q3 2022 one-offs. We reiterate our BUY and NOK175 target price.

Multiconsult (Buy, TP: NOK175.00) - Solid Q2, but soft comments

The Q2 results were in line with our forecast on adj. EPS, and the order backlog hit a new all-time high. However, the company moved to a more negative market outlook based on weakening building markets, and we have cut our EBIT margin forecasts as a result. With reduced EPS estimates and peer valuations, we have lowered our target price to NOK175 (190). However, given continued upside potential, we reiterate our BUY.

Multiconsult (Buy, TP: NOK190.00) - Incorporating one more takeover

Multiconsult acquired 70% of A-lab for cNOK102m in Q2. Having adjusted our figures for de facto holidays falling between bank holidays and weekends in the quarter, we have lowered our Q2 forecasts. We are now 37% below consensus on EBIT ahead of the results due at 07:00 CET on 23 August. We have also updated our forecasts for A-Lab, and raised our expected costs. We reiterate our BUY and NOK190 target price.

Multiconsult (Buy, TP: NOK190.00) - Good beat, an even better backlog

The Q1 results beat our forecast and consensus, and the solid order backlog has prompted us to raise our revenue estimates 23-25e. Given the high backlog, we expect Multiconsult to seek organic growth through new hires. The company has had 13 consecutive quarters with increasing EBIT margins since the implementation of its cost-control programme, but it indicated risks of increased competition based on a slowing construction sector in Q1. However, due to its diversified order backlog and proven ...

Northern Lights

Multiconsult (Buy, TP: NOK175.00) - Expecting a record order backlog

Following the large order of NOK1.07bn for the new Rikshospitalet/Aker hospital, we have raised our billing ratio, revenue and EBIT forecasts for 2023–2025. Additionally, having recalculated costs for Easter to land in Q2 rather than Q1, we have increased our Q1 EBIT margin estimate. Ahead of the Q1 results (due at c 07:00 CET on 10 May), we now expect 3% upside potential to consensus EBIT. Based on our raised forecasts, we reiterate our BUY and have increased our target price to NOK175 (170).

Northern Lights

Multiconsult - Initiation of coverage - Consulting for the future

We expect Multiconsult to benefit from the green energy transition and focus on non-Russian energy in Europe, thanks to its track record in hydro, wind and solar projects and Norway’s oil and gas sector. Also, the newly proposed EU energy performance act should start a renovation wave to offset softer residential development and real estate markets for its building operation. We find the valuation attractive but note limited share liquidity. We initiate coverage with a BUY and NOK170 target pric...

Multiconsult - 8% org. growth and 7% div. yield at P/E 12x

Q3: Clean figures in line with consensus 2% FTE growth q-o-q in Q3 Trading at a P/E of 12x and ~7% div. yield

Multiconsult - Clean EBIT in line with consensus

Q3: Clean EBIT NOK 53m vs. consensus NOK 54m Strong FTE growth Experiences strong demand in all business areas

Multiconsult - Another solid quarter coming up

Q3e: EBIT of NOK 59m Weaker demand ahead; we lower ’23e billing ratio by 1pp 10% discount to peers

Multiconsult - Strong first half of 2022

Q2 in line with consensus Small estimate changes Attractive valuation - we reiterate BUY, TP NOK 185

Multiconsult - Headline figures in line with consensus

Q2: EBIT of NOK 73m vs. cons NOK 72m Stronger market outlook comments We expect positive estimate changes from consensus

Sector Report - Q2’22 previews

Q2e: Revenues NOK 7.9bn, PTP NOK 413m Trading at ~20% below historical valuation

Multiconsult - 8% FCF yield should be attractive

Revenue NOK 1.06bn, EBIT NOK 76m Delivers on M&A, but organic growth too weak Trading at ~8% FCF yield

Multiconsult - Nothing but stellar

Q1: EBIT NOK 168m vs. cons NOK 150m Lower wages and billing ratio drove the beat Discount to peers is unwarranted