Bildkälla: Stockfoto

Cdon: Early Days - Redeye

Redeye initiates coverage of CDON, a high-margin and capital-light online marketplace with 2.3 million active customers and 1,500 connected merchants. While the recent rally has driven valuation to unsupported levels and the company now faces a formidable competitor in Amazon, we see long-term value in its exciting marketplace transformation and strengthening network effects.

International buying since CDON’s spin-off from Qliro in November has driven an enormous
rally in the stock (now >5x the spin-off price after peaking close to SEK 1000). As current
levels place it above our Base Case fair value (SEK 500) and in sight of our Bull Case (SEK
1000), we look for strong execution and positive returns on recent investments.
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