Västra Hamnen: Hövding - Back on track

Västra Hamnen Corporate Finance has released a research update on Hövding following the company's report for Q3 2020. The financials for the quarter were generally better than expected. Despite uncertainty, we see an improved long-term outlook and raise our valuation interval to 21.10 - 30.50 SEK per share, writes Västra Hamnen.
 

• Returns from crisis with its best-ever sales volume
• Near-term uncertainty but cost cuts and beneficial trends brighten the outlook
• We raise our fair value estimate to SEK 21.10 – 30.50 per share 

Hövding’s report for the third quarter was generally better than we had expected and suggests that the company has made its way through most
of its COVID-induced problems. In terms of units sold, Q3 2020 was the company’s best quarter ever, narrowly beating Q4 of last year. The missed sales in Q1 and Q2 appear to have been primarily caused by lockdowns. Uncertainty about the near term is still high, not least as some European
countries are imposing partial lockdowns due to a second wave of infections. Long term, we see encouraging signs in an accelerated shift of commuters from public transport to bicycle riding, and the rise of eBikes. Together with tighter cost control, this has triggered an upward revision of our fair value estimate for the share.

The full report is available here.

The research report is prepared as part of Market Focus, Västra Hamnen Corporate Finance's commissioned research offering.

This is a press release from Västra Hamnen Corporate Finance AB. 
Web: vhcorp.se
Twitter: @vhcorp_se