James Wheatcroft, an analyst from Jefferies, maintained the Hold rating on Better Collective A/S. The associated price target remains the same with SEK120.00.
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James Wheatcroft has given his Hold rating due to a combination of factors, including the company’s recent performance and future outlook. Despite facing challenges such as a low sports margin in the third quarter and currency exchange issues, Better Collective has maintained its FY25E guidance, largely thanks to strong revenue share performance in North America. This stability in guidance, despite the headwinds, suggests a level of resilience in the company’s operations.
However, the decision to maintain a Hold rating is influenced by previous reductions in FY25E estimates and revisions in medium-term guidance, which were prompted by uncertainties in key markets. The company’s ability to deliver on cost-saving measures and the repeated affirmation of guidance throughout the year may help restore investor confidence, yet the current valuation at 7x EV/EBITDA for FY26E reflects a cautious stance. These factors collectively underpin the Hold rating, indicating that while there are positive elements, there are also significant uncertainties that warrant a more reserved outlook.
In another report released on November 8, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a SEK114.00 price target.