Synsam's 'visionary growth' prompts Kepler, Citi to start with 'buy'
08/12/2021 09:36
** Shares in Swedish eyewear retailer Synsam SYNSAM.ST
rise 10% to their highest level since listing after upbeat
coverage initiations from Kepler Cheuvreux and Citi
** Kepler starts Synsam SYNSAM.ST with "buy", pointing to
the company's "visionary growth" - continued success of its
eyewear subscription service and retail network expansion
prospects that provide upside
** Citi echoes that view -- the broker flags Synsam's
"innovative" ideas and says it see the group continuing to
outgrow the market on similar initiatives
** Kepler forecasts an 11% organic net sales CAGR (Compound
Annual Growth Rate) over 2019-2023 estimates and an EBITDA
margin of 26% in 2023 for the company
** It also models a 50% long-term market share in Nordic
eyewear subscription, pointing to, among others, Synsam
"first-mover advantage," large customer base and technology
** Citi notes the stock is currently valued near the bottom
of its peer group, which in its view doesn't entirely capture
Synsam's "superior growth track record"
** The broker sets target price of SEK 90 on the company,
slightly above Kepler's one of SEK 85
** Including today's gains, the stock is up 30% since
listing in October this year
(Reporting by Ina Kreutz)
((ina.kreutz@thomsonreuters.com))