Analyst James Wheatcroft of Jefferies maintained a Buy rating on Better Collective A/S (BETCO – Research Report), retaining the price target of SEK275.00.
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James Wheatcroft’s rating is based on a combination of factors that suggest a positive outlook for Better Collective A/S despite some near-term challenges. The company has shifted its focus towards organic growth, prioritizing debt reduction and share buybacks, which indicates a strategic realignment that could enhance shareholder value in the long run. The recent announcement of a €10 million buyback further emphasizes this commitment.
While the new FY25E EBITDA guidance is set 12% below consensus due to headwinds like new Brazilian taxation and potential player churn, the company is counterbalancing these challenges with a €50 million cost savings program, expected to stabilize EBITDA year-over-year. Moreover, the current valuation of BETCO at 7.5x EV/EBITDA for FY25E is considered attractive compared to its historical average since its IPO, presenting a potential value opportunity for investors as profitability in Brazil and North America progresses.