In this financial analysis report, analysts Felix Johansson and Keller Edstrand take a closer look at the Swedish education company Academedia. Academedia is set to benefit from various macro trends in the upcoming three years which, according to the analysts, motivates a revenue CAGR of 15.7% between 2022-2025E. A target P/E valuation of 9.9x, in line peer average and further supported by an DCF, motivates a target price of 69.2 SEK and a potential upside of 40.0%.
Investment highlights:
- Structural macro trends will accelerate revenue growth in the upcoming years and benefit the Company.
- Unjustified market fear stemming from exaggerated political risk, alongside geographical expansion plans, incentivizes stock discount.
- Inflation-proof business model together with a clear-cut catalyst will boost the Company’s revenue.