Turnaround takes time

Europris (Hold, TP: NOK73.00) - Weak earnings trend

The Q3 results disappointed on weaker gross margins than expected and soft results from Sweden. We reiterate our HOLD, but have lowered our target price to NOK73 (75) after cutting our 2024e EPS by 4%. While we view Europris as attractively valued versus its Nordic peers, we believe it needs to reverse the negative earnings trend to restore investor confidence in its growth outlook.

Europris (Hold, TP: NOK75.00) - Slightly soft Q3

We consider this a slightly weak report, including figures below expectations, a hiked store guidance and no significant change in outlook. We expect consensus 2024e EBITDA to come down 1% and believe a neutral to slightly negative share price reaction is warranted.

Softer numbers and outlook

EBIT 8% below due to SWE: GM under pressure.Somwhat more cautious outlook

ÖoB: Right move, slow payoff

Europris (Hold, TP: NOK75.00) - Q3 on the fence

We are lukewarm ahead of the Q3 report, expecting EBITDA 7% below consensus on a soft margin trend in Norway, and with Sweden set to underperform with below market growth and a margin squeeze. We reiterate our HOLD and NOK75 target price.

Europris ASA: 1 director

A director at Europris ASA sold 145,000 shares at 73.676NOK and the significance rating of the trade was 83/100. 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 s...

Europris (Hold, TP: NOK75.00) - No quick fix for ÖOB

The Q2 results were broadly in line with expectations, but the sales trend in Norway was soft and the results from ÖoB weak, with a significant turnaround needed to achieve its SEK250m EBIT target by 2028. We have downgraded the stock to HOLD (BUY) and cut our target price to NOK75 (80) on lowered estimates.

Delayed gratification

Sales miss on weak mix, but EBIT in line. Targets 5% margin for ÖoB by '28 - will be back-end loaded. Underlying estimates unchanged, but slightly up due to ÖoB. HOLD

EBIT in -line

Europris (NOR) in -line, EPS boosted by NOK 45m one-offs. Targets 5% margin for ÖoB by'28 (NOK 1/ share). Largly as expected. Neutral report in our view, estm not likely to move much

Q2: Holding steady

We are in line ahead of Q2e, with EBIT of NOK 347m. May sales likely strong, June softer. HOLD, but TP up to NOK 71 (68) on 1-2% higher ests.

Europris (Buy, TP: NOK80.00) - Sweden takes centre stage

We reiterate our BUY and NOK80 target price on Europris, expecting Q2 results marginally above consensus due to higher sales. We expect key focus in the report to be on a potential update on the recent acquisition of ÖoB, still to be included in estimates.

Europris (Buy, TP: NOK80.00) - Not its best report

Both the Q1 results and the 2024 cost guidance disappointed. However, we reiterate our BUY as we continue to find the valuation attractive and believe Europris has a winning concept in the current market, but have lowered our target price to NOK80 (85), reflecting our estimate cuts.

Feeling the pressure

Weak Q1, EBIT 27% below on higher costs. Being squeezed on many fronts – GM & costs. Market will improve, but a soft Q2 is likely: HOLD.

Europris (Buy, TP: NOK85.00) - Weak report and guidance

We consider this a weak report, below expectations due to lower gross margins and higher costs, and a cost guidance above expectations. We expect consensus 2024e EBITDA to come down 7.5–10% and believe a c5–10% negative share price reaction is warranted.

Europris (Buy, TP: NOK85.00) - Entering Sweden at unique price

Europris announced yesterday after the close that it has signed an agreement to acquire the remaining 80% of Runsvengruppen. While Europris announced in January that it would exercise the option, we find it positive that the two parties have come to a final agreement, enabling Europris to enter Sweden at what we believe is a highly attractive multiple.

Europris (Buy, TP: NOK85.00) - Waiting for gross margin recovery

We are in line with consensus for Q1, as we expect a slight gross margin recovery YOY to be offset by higher opex-to-sales. We reiterate our BUY and NOK85 target price as we still find the valuation attractive and believe Europris should continue to outperform versus the market in a tough retail environment.

Europris (Buy, TP: NOK85.00) - Look past Q4 results to ÖoB deal

We reiterate our BUY and have raised our target price to NOK85 (80), as we believe the long-term valuation upside potential from the ÖoB acquisition offsets the estimate cuts stemming from a disappointing Q4. At our target price, Europris would be trading at a 2025e P/E of 13x excluding the contribution from the ÖoB acquisition.

Europris (Buy, TP: NOK80.00) - Europris to exercise ÖoB option

Europris announced this evening that it will exercise its option to acquire the remaining 80% of Runsvengruppen. While not surprising, we believe the decision is a clear positive, bringing Europris closer to entering Sweden at what we believe is a highly attractive multiple.

Europris (Buy, TP: NOK80.00) - Closing in on Swedish expansion

Europris announced that it won the arbitration case with RuNor considering its option to acquire the remaining 80% of Runsvengruppen and that the 2019 EBITDA as adjusted down SEK18.4m. We believe the announcement is a clear positive, bringing Europris one step closer to entering Sweden at a highly attractive multiple at a price cNOK200m below the previous guidance.