We initiate coverage of Zutec, a cloud-based software provider to the construction industry. Following a change of management in early 2020 and a reshaped business model, the company has experienced strong growth with an improving cost base. We see ample room for Zutec to grow by transitioning one of the least digitized industries in the world. Our fair value range is SEK 6.6-8.6 per share with a mid-point value of SEK 7.6 per share.
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