Hyve Group (HYVE.L), mcap=$214m, price $73.30 vs $68.00

HYVE.L pitch:
– Hyve is a small-cap UK-listed owner/organizer of exhibitions and conferences that has been hit hard by COVID – shares fell by 90%.
– Company has strong FCF conversion, is now repositioned and is inflecting strongly to pre-pandemic levels.
– Two of its most significant events have outperformed prior editions with revenues up to 40% higher to pre-COVID levels.
– Strong 2023 bookings and peer commentaries support the thesis of event recovery.
– The company is expected to return to the 25% pre-COVID operating margins by 2025.

HYVE.L valuation:
– Trades at 7x multiple on recovered EBIT (i.e. pre-COVID levels) vs peers in the 14x range.
– Industry transaction have taken place at an average of 16xEBITDA.

Exp. gain: +150% to £1.8/share.

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