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Nelly Group: A new beginning - DNB

From an investment standpoint, the Nelly narrative is all about momentum in: 1) the profitability trajectory; 2) top-line momentum; and 3) the success of its relaunch. We forecast a 2021–2023 sales CAGR of 4% and EBIT margin expansion of 580bp, and initiate coverage with a fair value of SEK30–40/share.

From an investment standpoint, the Nelly narrative is all about momentum in: 1) the profitability trajectory; 2) top-line momentum; and 3) the success of its relaunch. We forecast a 2021–2023 sales CAGR of 4% and EBIT margin expansion of 580bp, and initiate coverage with a fair value of SEK30–40/share.
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