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Pricer: Strong momentum to continue in Q2 - ABG

Q2 report due Tuesday, 20 July
We expect sales +34% y-o-y and orders +25% y-o-y
29-21x ’21-‘22e EV/EBIT

Pricer’s momentum continues to be strong, with several new agreements announced over the past months. Coop Norge has signed a new framework agreement with the company (est. value of SEK 140m), a Norwegian specialty chain has placed an order of ~SEK 22.5m through its partner Strongpoint, and Best Buy Canada has decided to use Pricer as its ESL supplier, a contract valued at SEK 57m and covering 129 stores. Furthermore, we have recently seen reports that Pricer supplier E-Ink is saying that demand is good (source: Taipei Times). However, it also says that demand is greatly exceeding what the company can supply, which highlights the industry’s distressed supply chain.

21x 2022e EV/EBIT, 20% 2019-2023e EBIT CAGR
After a strong share price run in H2’20, Pricer’s share is down -17% YTD vs. OMXSALL at +24%. On our new estimates, we see a valuation of 29-21x ’21-‘22e EV/EBIT.
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