Research update


Paynova: Updated projections

The consumer credit service for Paynova's largest client SJ has now been fully operational for almost two full quarters. This has given us indications of growth in sales and margin development for the new business model. In this report, we have modified our long-term financial projections and motivated fair value accordingly.

Updated financial projections has resulted in a new estimated fair value of 1.3 SEK per share in our Base Case scenario. The Bear and Bull Case scenarios implies values of 0.9 SEK and 2.8 SEK respectively.

Paynova has successfully completed the transition to the new business model and has capacity and operational experience to add new clients without increasing costs significantly. Paynova is in discussions with large, well-established companies and we believe the chances of adding new clients during the spring is rather high.

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