The GARO share is trading at ~46x and ~39x ’22 and ‘23e EV/EBIT. The high valuation is supported by a particularly strong growth outlook, where GARO is in a strong position in the Nordic EV-charging market. Currently E-mobility accounts for ~34% of sales (‘21e), which we expect to rise to ~46% (‘23e). In addition, we believe the largest business at the moment, Electric distribution products (~42% of ‘21e sales), should benefit from the EV-charging market. All in all, we expect GARO to see a ’20-‘23e sales CAGR of 21% and a ’20-‘23e EBIT CAGR of 29%. We value GARO using a DCF, which generates a value range of SEK 207-260 per share.
