Fortnox' 'quite sensitive' valuation hit by media report
27/03/2024 10:49
** Shares in the Swedish accounting solutions firm Fortnox
FNOX.ST drop around 9%, paring earlier losses of as much as
15.3%, after a report in the Financial Times said the stock
attracts short sellers
** "I believe the valuation was quite sensitive to negative
news like the FT article," Redeye analyst Fredrik Nilsson says
** He points out the valuation has risen from about 13x NTM
(next twelve months) sales to about 22x NTM sales in just four
months following the Q4 report and short covering
** The analyst adds he does not see any new information in
the article, but says some investors might have had much higher
expectations on future net customer growth than Redeye has
** Some hedge funds, analysts wonder how Fortnox increased
revenues "with metronomic regularity" and question the size of
the group's addressable market, the Financial Times report said
** Fortnox could not provide an immediate comment when
contacted by Reuters
** According to Financial Supervisory Authority's website,
2.31% of Fortnox' shares are shorted
** The stock, on track for its worst day in five months, is
among worst performers on the pan-European STOXX 600 index
.STOXX
** About 3.2 million shares of the company have traded so
far today, more than two times of their 30-day moving average
full-day volume
(Reporting by Agata Rybska)
((gdansk.newsroom@thomsonreuters.com;))