Ageing demographic to drive demand for Ambea - Berenberg starts with 'buy'

Ambea publ AB

06/07/2022 09:23

** Berenberg initiates coverage of Ambea  AMBEA.ST  with
"buy", citing ageing demographic trends which will drive demand
for the Swedish care provider 
    ** As structural growth driver for Ambea, Berenberg also
flags municipalities being financially strained and close to
100% of their available beds capacity
    ** The broker says Ambea is able to generate about 80% of
its current market cap in 2022-2026 FCF after leases, leaving
"ample room for value creation through bolt-on acquisitions and
buybacks"
    ** It adds that the stock trades at a trough valuation even
though demand and growth is set to increase - sets PT at SEK 75
    ** Ambea shares rise 2.4% to SEK 47.82



 (Reporting by Jacob Rasmussen)
 ((jacob.rasmussen@thomsonreuters.com))