Storytel rises after 'forward-leaning' mid-term targets
13/06/2023 09:45
** Shares in Storytel STORYb.ST rise 7% after the Swedish
audio and e-book streaming group presented what DNB analysts
called "forward-leaning, yet achievable" mid-term targets
** Storytel targets total net sales of at least SEK 5
billion ($465 million) in 2026 through organic growth, with
average organic streaming revenue growth of 15% per year
** It aims for capex of about 5% of group revenue while also
targeting positive and significant increase in operational cash
flow from 2023
** DNB says Storytel should shrug off some uncertainty and
investor scepticism related 2023 trajectory
** The broker sees a large re-rating opportunity by 2024
should the company deliver on its new targets, saying the
investment community now has a clearer strategic direction
** DNB adds it believes it's fair to assume that Storytel
this time "has under promised to over deliver", having learnt
from previous guidance disappointments
($1 = 10.7438 Swedish crowns)
(Reporting by Elviira Luoma)
((Elviira.luoma@thomsonreuters.com))