Pareto Securities reiterates its buy recommendation for Kinnevik with a target price of SEK 71, designating the investment firm as one of its top picks ahead of the second-quarter reporting period.
The research firm notes that valuations for peer software and healthcare companies have risen sharply during the quarter, posting gains of 29% and 17% respectively. Based on these valuation shifts, Pareto estimates that Kinnevik's net asset value (NAV) could increase by approximately 14% compared to the previous quarter.
Pareto also highlights that Navan, a peer to the travel and corporate expense company Perk, has surged 167% since its March lows, which according to the analysts increases the likelihood of a future IPO for Perk.
According to Pareto, Kinnevik is trading at a 66% discount to its estimated NAV excluding net cash, making it one of the firm's favorites heading into the upcoming earnings season.
Kinnevik's Class B shares are up 6.8% on the Stockholm Stock Exchange.
Kinnevik AB is a Sweden-based investment company focused on building digital consumer businesses. The Company's operations are divided into four segments, namely: E-commerce and Marketplaces, Communication, Entertainment and Financial Services. The E-commerce and Marketplaces segment is represented by such investments, as Zalando, Global Fashion Group, Qliro Group, Home24, Lazada, Linio, Konga and Rocket Internet, among others. The Communication segment is represented by such investments, as Tele2 and MiIlicom. The Entertainment segment is represented by MTG and Metro investments. The Financial services segment is represented by Bayport, Betterment, Bima investments. The Company operates globally in more than 80 counties.
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