Paynova: High growth in 2018

Research Update

2017-11-07

07:30

The Q3-report was in line with our expectations when it comes to revenue, SEK 8.3 million (estimate SEK 8.0). EBITDA was weaker than expected, SEK -3.2 million versus SEK -1.9 million. Ongoing tests with the announced healthcare client have been successful, and a broad launch is planned in the near future, which increases the likelihood of our estimated revenue growth in 2018-2019. High competition in the industry could, however, squeeze profit margins in the future. Our new bull-case is SEK 1.25 (prior 2.8). Our fair value range is 0.36-1.25 with a base case of SEK 0.76. The lower fair value range is explained in the ongoing directed rights issue with a 25% dilution effect.

TO

Tomas Otterbeck

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