AcadeMedia AB (Buy, TP: SEK92.00) - Finding bolt-on acquisitions again

Q1 was in line with our forecasts, showing growth across all segments. We see a solid demand outlook, driving growth, and an attractive valuation (2024/25–2026/27e FCF yield of 15–20%), with AcadeMedia back in acquisition mode (four bolt-ons in Q1) and the now recurring share redemption programme (SEK300m) addressing its weak track record in capital allocation. We see the potential for a continued re-rating and reiterate our BUY and SEK92 target price.

Q1 beat driven by Adult Education

Strong Q1 but temporary drivers

Strong sales growth to continue in Q1

The tide has turned

Another impressive quarter on the books. Preschool profitability finally on the rise. Reiterate BUY with unchanged TP of SEK 85.

AcadeMedia AB (Buy, TP: SEK92.00) - Revaluation opportunity maturing

AcadeMedia ended the year with profitable growth across all segments, strong FCF generation, and a solid balance sheet with the Touhula acquisition and the recurring share redemption programme addressing the weak capital allocation. We see a rerating opportunity similar to Ambea in recent quarters, and reiterate our BUY with a raised target price of SEK92 (65).

AcadeMedia AB (Buy, TP: SEK65.00) - Solid Q4 headline numbers

The operating and financial strength continued, looking at the early release of its Q4 headline numbers. We have raised our 2024–2026e EPS by 1–3%. We see a solid demand outlook and an attractive valuation (FCF yield for 2024/25e of 22% and 2025/26e of 24%) but a lack of catalysts, with the Touhula acquisition and 2024 share redemption addressing its track record of weak capital allocation. We reiterate our BUY and SEK65 target price, still implying no near-term multiples expansion.

AcadeMedia AB: 1 director

A director at AcadeMedia AB maiden bought 9,000 shares at 56.050SEK and the significance rating of the trade was 54/100. 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 c...

AcadeMedia AB (Buy, TP: SEK65.00) - Finnish market entry

Q3 was solid, with growth, profit and FCF driven by volume and price. The Touhula acquisition appears value-enhancing and AcadeMedia’s recent share redemption makes sense, now starting to address its track record of weak capital allocation. We see a solid demand outlook and an attractive valuation, and reiterate our BUY. We have raised our target price to SEK65 (63), still implying no near-term multiples expansion.

On the right track again

Profitability is on the rise. More to come when utilisation improves. Reiterate BUY, new TP of SEK 85 (80).

Strong Q3 numbers

AcadeMedia AB (Buy, TP: SEK63.00) - Q3e share redemption

The Q2 results were in line with expectations with still-strong FCF generation and an indication of 4–5% school-voucher price adjustments for 2024, now better offsetting ongoing cost inflation. We have only tweaked our EPS forecasts following the results. We see a solid demand outlook and an attractive valuation (2023/24–2025/26e FCF yields of 14–21%), with the upcoming Q3e share redemption (equal to a buyback of c3.8% of shares outstanding) starting to counter ‘value trap’ arguments. We reitera...

AcadeMedia AB (Buy, TP: SEK63.00) - Updated capital allocation policy

The Q1 results were in line with our forecasts, and management guided for a better cost inflation and voucher price adjustments balance in 2024. We see a solid demand outlook and an attractive valuation (2023/24–2024/25e FCF yield of 18–22%) but a lack of near-term catalysts. However, its board has taken a small step in the right direction in updating the capital allocation policy, suggesting a 2024 share redemption programme. We reiterate our BUY and SEK63 target price, reflecting still-healthy...

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AcadeMedia AB (Buy, TP: SEK63.00) - Solid Q4 headline numbers

Q4 continued AcadeMedia’s operational and financial strength, looking at its early release of headline numbers. We have raised our EPS forecasts by 2–3%. We see a solid demand outlook and an attractive valuation (FCF yield 2023/24e of 20% and 2024/25e of 23%) but a lack of catalysts, with its board doing little to counter ‘value trap’ concerns. We reiterate our BUY and SEK63 target price, suggesting no near-term multiples expansion.

Northern Lights

AcadeMedia AB (Buy, TP: SEK63.00) - Going international

AcadeMedia reported solid Q3 results, seeing high growth, driven by price and volume, and good mitigation of the high cost inflation. We have raised our EPS forecasts by 2–3%. We see a solid demand outlook and an attractive valuation (FCF yield 2023/24e of 19% and 2024/25e of 21%) but a lack of catalysts, with the board doing little to counter ‘value trap’ concerns. We reiterate our BUY and have raised our target price to SEK63 (61), suggesting no near-term multiples expansion.

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AcadeMedia AB (Buy, TP: SEK61.00) - 2023 voucher price adjustments bet...

The Q2 results were in line with expectations and, more importantly, AcadeMedia indicated higher school voucher price adjustments for 2023 than we expected, partly offsetting current cost inflation. We have only tweaked our EPS forecasts post the results. We see a solid demand outlook and an attractive valuation (2023/24–2024/25e FCF yields of 19–21%) but a lack of catalysts, with the board doing little to counter ‘value trap’ concerns. We reiterate our BUY and SEK61 target price, suggesting no ...

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