NoHo Partners: CMD provided more clarity on international growth strategy - Nordea

NoHo Partners hosted a CMD yesterday, where it talked about its new strategy and long-term targets for the strategy period 2025-27. The main takeaway in our opinion was the new strategy for international growth: the key here is to grow internationally trough investment activities, where NoHo seeks for investor partnerships, develops the investment together with the partner, creates value for the investment and then exits at a later stage. Hence, NoHo would act as an active investor, holding either a majority or a minority share, in which case the numbers would not be consolidated into the group numbers, and our focus would turn more towards earnings per share. We were left with an impression that this model allows for faster growth, at the same time retaining the operative power. In Finland, NoHo aims to continue its profitable growth through e.g., new openings and acquisitions, and we view the EUR 400m sales target by 2027 as achievable. In conclusion, the CMD provided confirmation that while the new strategy is ambitious and somewhat more risky, in our view, NoHo’s execution will still be careful and thought-through. With the current portfolio, we now model a 7% sales CAGR for 2023-27E, while growth through new openings and majority ownership acquisitions would provide upside to our estimates. Given NoHo’s new strategy, we view the investment case as compelling, especially in the long-term.