ChemoTech: Pet care getting attention (Västra Hamnen)
Västra Hamnen Corporate Finance has released a research update on Scandinavian ChemoTech following its report for Q2 2019. The report shows several promising developments, not least the increased focus on the veterinary market. Yet the near-term outlook makes us adjust our valuation interval somewhat downwards.
- Increased focus on veterinary market and progress towards CE mark
- Yet the near-term outlook unlikely to meet our projections
- We lower forecasts and cut valuation range to SEK 15.40 – 23.70 per share
ChemoTech released its second quarter report earlier this week. In it, the company described several promising developments, not least its intensified efforts towards the veterinary market. However, we are worried that our near-term projections may have been too optimistic. We therefore reduce our sales estimates for the coming 2-year period, giving the company more room to surprise on the upside. In consequence, we lower our valuation range to SEK 15.40 – 23.70 per share from SEK 17.00 – 25.70.
The full report is available here.
The research report is prepared as part of Market Focus, Västra Hamnen Corporate Finance's commissioned research offering.