Sinch soars on reduced debt target

Sinch AB (publ)

09/09/2024 15:46

** Shares in Sinch  SINCH.ST  jump 13% after the Swedish
cloud services provider announced a new debt policy, which an
analyst says soothes worries over balance sheet
    ** The company now targets its net debt vs adjusted EBITDA
ratio to be below 2.5 against the earlier target of less than
3.5
    ** Though ABG analyst Daniel Thorsson sees the new target as
"relatively unsurprising", he says it leaves worries over high
leverage and weak cash flow behind
    ** "Even though one can argue that the reduced leverage
ratio is somewhat limiting larger M&A, we argue that this is a
small net positive for the share," Thorsson adds
    ** If gains hold, Sinch shares will see their best day since
November 2023; they are down 12% YTD as high costs have hit its
profits

 (Reporting by Boleslaw Lasocki)
 ((boleslaw.lasocki@thomsonreuters.com; +48 58 769 66 00;))