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 impacting Better Collective A/S. The company’s recent financial performance showed a 6% shortfall in EBITDA compared to the consensus, which raises concerns about its ability to meet expectations. Despite reiterating guidance for FY25E, the company faces challenges in key markets such as North America and Europe, where revenues have declined significantly.
Additionally, while the valuation appears low at 8.4x EV/EBITDA for FY25E, the uncertainty in core markets and recent downward revisions in medium-term guidance contribute to a cautious outlook. Although the company has secured substantial cost savings and is experiencing positive momentum in Brazil, these factors are not enough to offset the broader market challenges. Consequently, the Hold rating reflects a balanced view of potential risks and opportunities.
Wheatcroft covers the Consumer Cyclical sector, focusing on stocks such as Inchcape, Entain plc, and Flutter Entertainment PLC. According to TipRanks, Wheatcroft has an average return of 10.0% and a 52.94% success rate on recommended stocks.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a SEK148.00 price target.