Sdiptech: Infrastructure for Growth
Initiating Coverage
2018-11-19
07:30
We initiate coverage of Sdiptech. Since the IPO of the preferred share in 2015, the company has made 24 acquisitions. Besides acquisitions, Sdiptech has an ambitious organic growth target of 5-10% annually, which we find optimistic. Nevertheless, we see potential for above-market growth rates in several subsidiaries – in niches such as Climate, Electricity and Water – due to their exposure to structural drivers such as sustainability, safety and convenience. Our Base case, excluding future acquisitions, is SEK 48 i.e. at a 20% premium to the current stock price.
FN
HA
Fredrik Nilsson
Henrik Alveskog
Disclosures and disclaimers