In a report released today, Adela Dashian from Jefferies maintained a Buy rating on Swedencare AB, with a price target of SEK55.00.
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Adela Dashian has given her Buy rating due to a combination of factors that highlight Swedencare AB’s strong growth potential and strategic positioning in the global pet health market. The company’s recently updated five-year financial targets demonstrate its focus on sustaining above-market growth through double-digit organic growth, maintaining an operating EBITDA margin above 26%, and a 40% dividend payout ratio. Additionally, its conservative approach to net debt, targeting a net debt/EBITDA ratio below 2.0x, ensures flexibility for future mergers and acquisitions.
These initiatives are underpinned by Swedencare’s dedication to product innovation, expanding distribution channels, and operational efficiency, while leveraging digital transformation and fostering stronger relationships with veterinary professionals. Despite potential risks, such as execution challenges in a competitive and evolving market, the company’s financial targets and scalability indicate long-term confidence in its business model. This positions Swedencare well to benefit from ongoing structural tailwinds in the pet health industry.