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Bactiguard: Further cost increases should stimulate growth - SEB

We make minor revisions to our long-term estimates for Bactiguard after the Q4 results and reiterate our mid-point DCF of SEK 119 per share. Although the pace needs to rise if our estimates are to be reached, Bactiguard returned to growth in 2022 (net sales up 16% in constant exchange rates, CER). We think the prospects for operating leverage are strong, with better momentum in BIP and with licence partners, and with opex increases set to diminish.

We make minor revisions to our long-term estimates for Bactiguard after the Q4 results and reiterate our mid-point DCF of SEK 119 per share. Although the pace needs to rise if our estimates are to be reached, Bactiguard returned to growth in 2022 (net sales up 16% in constant exchange rates, CER). We think the prospects for operating leverage are strong, with better momentum in BIP and with licence partners, and with opex increases set to diminish.
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