G5 Entertainment: Profitable surprise - SEB
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G5 Entertainment: Profitable surprise - SEB

G5 reported a solid Q4 report with 1% q/q organic sales growth and, despite including extraordinary costs, stronger than expected earnings. Such extraordinary costs mainly relate to an M&A process that ultimately did not lead to an agreement, although it points to a potential investment case trigger we had previously not considered. Our new DCF-based mid-point fair value is SEK 167 (160) per share, with the shares trading at a 2025E EV/EBIT of 6x.

G5 reported a solid Q4 report with 1% q/q organic sales growth and, despite including extraordinary costs, stronger than expected earnings. Such extraordinary costs mainly relate to an M&A process that ultimately did not lead to an agreement, although it points to a potential investment case trigger we had previously not considered. Our new DCF-based mid-point fair value is SEK 167 (160) per share, with the shares trading at a 2025E EV/EBIT of 6x.
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