The installation company Bravida has received a buy recommendation from Dagens industri under the "Stock of the Week" column.
In its analysis, the newspaper chooses to dismiss the Bravida scandal involving extensive overbilling, instead highlighting that the stock has bottomed out and could see a significant rebound when the turnaround occurs.
The paper emphasizes how Bravida is working to streamline its Swedish operations, which is expected to lead to a boost in profitability according to CEO Mattias Johansson. At the same time, there has been a substantial improvement in the Danish operations, which is contributing to Bravida's margin potentially increasing to 6.3 percent this year.
As Bravida leaves its slump behind, the valuation remains low. Based on Di's earnings forecast for 2026, the price-to-earnings ratio stands at 13 times, compared to the average of 18. "Valuation has only been this low three times since the listing in 2015," the paper notes.
If valued in line with the historical average, the upside is about 20 percent, and with the addition of the dividend yield, it rises to around 25 percent.
"The fourth quarter is seasonally the strongest, and the year-end report will be released on February 18. We're taking a chance and buying already today," writes Di.
Bravida Holding AB is a Sweden-based supplier of technical installation and services to buildings and structures. The Company offers expertise and integrated solutions in three technology areas, namely electricity, plumbing, and heating, ventilation, and air conditioning (HVAC). Its offer ranges from consulting and design to installation and servicing, and is divided into two main areas: installation of technical systems in buildings and facilities, and service and maintenance of completed installations. The Company also provides property management, security alarms and access control solutions, among others. It is active in five geographical divisions, namely North, Stockholm, South, Norway and Denmark.
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