ADDvise Group (ADDV-B.ST), mcap=sek1.1bn, price sek6.53 vs sek6.3

Pitch: Sweedish MedTech rollup with a programmatic M&A playbook – seeking to exploit public/private valuation arbitrage by acquiring businesses at 5-7x EBITDA. Considered to be early-stage DHR or TMO. Recently seen explosion in growth, margins, and M&A capabilities. Higher scale, improved geographical/product diversification, and increased sell-side coverage/liquidity are expected to drive re-valuation. Management owns 25% and continues buying in the open market.

Valuation: Trades at 6.5x 2022 EBITDA, with earnings expected to increase 3x for the current year vs 2021. Expected to re-valuate to 15-20x EBITDA.

Exp. gain: +120% to sek14/share over the next 12 months. Potential 10x bagger in a few years.

Full ADDV-B.ST write-up (free guest account required):

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