Europris ASA: 1 director

A director at Europris ASA bought 7,232 shares at 68.704NOK and the significance rating of the trade was 69/100. 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 (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.

Europris (Buy, TP: NOK80.00) - Well positioned in tough market

We are 3% above consensus on Q4e EBITDA, as we expect continued LFL growth and a slightly improved gross margin YOY. We reiterate our BUY recommendation and keep our target price unchanged, despite slight positive estimate revisions, as we continue to find the valuation attractive and believe Europris is well positioned for the current retail environment.

Europris (Buy, TP: NOK80.00) - Q3 slightly above consensus

We consider this a slightly positive report for Europris, including results above consensus driven by a better gross margin and no change to the outlook. We expect a 1% positive revision to consensus 2023e EBITDA and believe a positive share price reaction is warranted.

Europris (Buy, TP: NOK80.00) - Eyeing Q3 gross margin recovery

We are positive ahead of the Q3 results, expecting a beat versus consensus driven by a continued positive LFL trend and slightly higher gross margins QOQ. We still find the valuation attractive and believe Europris has a strong offering in the current retail environment. We reiterate our BUY but have lowered our target price to NOK80 (83) on slight estimate cuts.

Europris (Buy, TP: NOK83.00) - Making headway despite headwinds

The Q2 results were slightly above consensus, with no change in outlook. We reiterate our BUY as we continue to believe Europris has a strong offering in the current challenging retail environment, but have cut our target price to NOK83 (85), reflecting minor estimate revisions.

Europris (Buy, TP: NOK85.00) - Q2 broadly in line

We consider this a neutral to slightly positive report for Europris, including figures in line with expectations and no change to the guidance. We expect no significant change to consensus 2023e EBITDA, and believe a slight positive share price reaction is warranted.

Northern Lights

Europris (Buy, TP: NOK85.00) - Still outperforming in tough market

Europris is due to report its Q2 results at 07:00 CET on 13 July. We are neutral ahead of the report, expecting EBITDA 2% below consensus and no change in outlook. We reiterate our BUY and NOK85 target price following minor positive estimate revisions. We still find the valuation attractive and expect Europris’ concept of having a broad product offering at low prices to allow it to further outperform in a challenging retail environment.

Northern Lights

Northern Lights

Europris (Buy, TP: NOK85.00) - Strong performance continues

Europris reported a convincing Q1, with better than expected results driven by strong revenues and margins, as well as a positive trading update for Q2. Furthermore, we find the acquisition of the remaining 33% of Lekekassen attractive. We reiterate our BUY, but also keep our NOK85 target price given our slight positive estimate revisions are offset by the recent dividend.

Europris (Buy, TP: NOK85.00) - Expect continued outperformance

Europris is set to report its Q1 results at 07:00 CET on 27 April. We are positive ahead of the report, expecting figures above consensus and no change in the outlook. We reiterate our BUY and NOK85 target price as we continue to find the valuation attractive and as we expect continued outperformance, supported by a solid offering and an improved operating platform.