Vow: Q1 operational update: All-time-high results, growth in all ends of the business - Nordea

Vow published an operational update for Q1 yesterday (the company reports semi-annually). We have seen an overall positive development across all the segments, with clear signs of increased activity. We argue that the trading update was in line with the development we expected in the short-term. However, we note several positive datapoints, thus providing further confidence around our full-year estimates. Revenue in Q1 doubled y/y, reaching NOK 182.5m, in addition to an EBITDA of NOK 23.6 (12.9% margin). Lastly, contract newsflow has been strong for the past months, and we see strong demand across all parts of Vow’s business. The order backlog (incl. options) is at high levels, reaching NOK 2.1bn in the quarter (up 31% y/y). The company reiterated its full-year revenue guidance, and we expect limited consensus estimate revisions following the update. We still view Vow as attractive at current levels, trading at 2024E EV/EBIT of 10.5x and P/E of 14.0x and still see between ~55-70% upside to current share price on our fair value range of NOK 35-39 per share.