ABG Sundal Collier cuts price target on stock market losses

ABG Sundal Collier cuts price target on stock market losses

ABG Sundal Collier lowers its target price for Link Mobility stock from NOK 35 to NOK 23, with a repeat buy recommendation.

The brokerage emphasizes that Link Mobility is trading at low multiples and does not consider the level of debt to be an issue. According to TDN Direkt, ABG Sundal Collier believes the company has plenty of time to generate cash flow, reduce costs, and drive future growth. Lower estimates are cited as the reason for the lower target price.

Stool after quarterly show

On August 16, Link Mobility presented its quarterly figures, which sent prices down nearly 30 percent before the stock ended at NOK 9.40.

Link Mobility generated revenue of NOK 1,177 million in the second quarter, up from NOK 1,055 million in the same period the previous year. This resulted in an adjusted operating result before depreciation and amortization (EBITDA) of NOK 129 million, compared to NOK 119 million last year.

The company was priced at NOK 10 billion in connection with returning to the Oslo Stock Exchange in October 2020. On Thursday, the stock traded for NOK 7.98, down 0.3 percent, with a market capitalization of NOK 2.35 billion.

The top manager went on the day

In mid-May, it was announced that Guillaume van Gaver had resigned as CEO of Link Mobility with immediate effect. At the same time, the Board of Directors appointed Chief Financial Officer Thomas Berg as interim CEO.

See also  It is referred to as a midway flop – approaching launch outside the US
Hanisi Anenih

Hanisi Anenih

"Web specialist. Lifelong zombie maven. Coffee ninja. Hipster-friendly analyst."

Leave a Reply

Your email address will not be published. Required fields are marked *