Nelly ended 2024 on a high note, reporting sales growth of 5.5% and a 51% jump in EBIT in Q4. The strategic decision to prioritise margins over volumes continues to bear fruit, as EBIT margin climbed 3.4pp y/y in Q4, but Nelly’s journey appears to be far from over. Consumer sentiment in the Nordics seems likely to improve in 2025 and Nelly stands to benefit. We raise our mid-point equity value to SEK 48 (43) per share with a range of SEK 36-60 (33-54).
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