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BuildData: Structural trends look set to triumph - SEB

BuildData’s market has low digital penetration but high end-customer cyclicality. We think structural trends will triumph but lower our estimates in anticipation of a general slowdown. Break-even and positive cash flow look to be within reach, in our view, while the balance sheet is healthy. Our new fair value range of SEK 9-11 per share implies a (mid-point) 2022/23E EV/S of 6x, which is lower than construction and property software peers.

BuildData’s market has low digital penetration but high end-customer cyclicality. We think structural trends will triumph but lower our estimates in anticipation of a general slowdown. Break-even and positive cash flow look to be within reach, in our view, while the balance sheet is healthy. Our new fair value range of SEK 9-11 per share implies a (mid-point) 2022/23E EV/S of 6x, which is lower than construction and property software peers.
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