EG7 (Q4 Review): Balance sheet clean-up supports valuation improvement - Redeye
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EG7 (Q4 Review): Balance sheet clean-up supports valuation improvement - Redeye

Redeye updates on EG7 after Q4-results which were stronger than expected, while the company also cleaned up its balance sheet and settled an earn-out related to Daybreak. Redeye believes this is positive for the valuation of EG7, which currently trades at low multiples and with significant upside to our base case of SEK28. We have made limited changes to our revenue and EBITDA-estimates, while we have raised EBIT and EPS owing to lower acquisition-related amortizations after the asset impairment.

Redeye updates on EG7 after Q4-results which were stronger than expected, while the company also cleaned up its balance sheet and settled an earn-out related to Daybreak. Redeye believes this is positive for the valuation of EG7, which currently trades at low multiples and with significant upside to our base case of SEK28. We have made limited changes to our revenue and EBITDA-estimates, while we have raised EBIT and EPS owing to lower acquisition-related amortizations after the asset impairment.
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