Pricer
Pricer - Another Best Buy order, estimates up 15% (ABG Sundal Collier)

2020-02-24 16:40
Obtains SEK 300m follow-up order from Best Buy…
….now covering all of Best Buy’s US stores
‘20e sales and EBIT up 15% and 17%, respectively
SEK 300m order to be delivered during Q2-Q4’20
Last Thursday, Pricer obtained a SEK 300m order from US retail and electronics chain Best Buy. Given the short timeframe since the last order, received on 30 December 2019 for SEK 625m, we find this news somewhat surprising. The order is nonetheless a positive development, and means that Pricer will have its solution installed in all of Best Buy’s US stores. The roll-out is expected to be completed by the end of 2020, with a delivery period between Q2-Q4’20.

Pricer continues to validate its strong ESL offering
Best Buy’s operation currently comprises ~1,000 domestic and ~200 international stores. Although the total number of stores (both in the US and internationally) has been declining in recent years, we believe that Best Buy will also install an ESL solution in its international stores, and that Pricer will be the supplier. We see recent news (and financials) as suggesting that Pricer continues to validate its position as market leader, and that there is a high market demand for ESL solutions regardless of whether the preferred technology is IR or radio.

92% sales growth in ‘20e, 16x EV/EBIT
We raise our 2020e sales and EBIT by 15% and 17%, respectively. In addition, we have lifted our 2021-2022 estimates on the assessment that Pricer will also deliver its solution to Best Buy’s international stores. We continue to forecast contracting gross margins ahead, mainly because of volume discount on larger orders, but also assess that the underlying gross margins will come down a notch. This is because there was an oversupply of components on the market in 2019, which we think will normalise in 2020. On our new estimates, we forecast 2020 EBIT of SEK 160m, which equates to 16x EV/EBIT on today’s share price.


  • Läs mer på Introduce

  • Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.

info@introduce.se (Introduce.se)
ABG Sundal Collier - Introduce.se

Pricer B - I dag

{point.key}

Marknadsöversikt

Stockholmsbörsen, OMXS30

I dag
-
Senast
-
{point.key}

Världsindex

Index +/- % Senast
DAX - -
Hang Seng - -
Nikkei - -

Valutor

Valuta +/- % Senast
USD/SEK - -
EUR/SEK - -
GBP/SEK - -
EUR/USD - -

Räntor

Ränta +/- % Senast
5-års ränta - -
10-års ränta - -

Råvaror

Råvara +/- % Senast
Guld - -
Silver - -
Koppar - -