Opus Group: Waiting for New Jersey

Research Update

2017-11-19

14:11

The Q3 report was satisfactory overall, and somewhat better than anticipated on several important points. EBITDA of SEK 84m is more or less unchanged Y/Y but more than SEK 10m above our forecast. All new and growing businesses, including recently acquired Autologic, seem to be doing well. Several of these will start to make a contribution to profits next year. Most critical in the short term is information from New Jersey, where Opus has won a contract that is being protested by the incumbent operator. A good report and a stronger dollar can support slightly higher forecasts. We have not included New Jersey yet, although we believe Opus will get the business. Our valuation has not changed significantly and gives a fair value in our Base Case of almost SEK 10 per share. (This is an English version of the Swedish update published earlier on November 16, 2017)

HA

Henrik Alveskog

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