Kepler starts Addtech at 'hold' on steady growth trajectory

Addtech AB

26/03/2025 09:37

** Kepler Cheuvreux initiates Addtech ADDTb.ST with "hold", saying the Swedish technical solutions provider either needs "overly ambitious" growth assumptions or much lower growth than usual for it to take a more active stance

** The broker says Addtech's business model benefits from profitable growth, with EBIT compound annual growth of about 15% over the last 15 years

** M&A has historically accounted for around 60% of the company's growth, which "is likely to continue on the back of sustained cash generation", adds Kepler

** It also points to Addtech's "diversified risk" through 150 trading companies in about 20 countries, providing steady growth somewhat independent of business cycles

** Five out of eight analysts covering the stock rate it "buy", with three at "hold", based on LSEG data

 (Reporting by Vera Dvorakova)

 ((vera.dvorakova@thomsonreuters.com))