Redeye increases its estimates and fair value range for Carasent. We argue that the acquisition of Avans Soma was strategically and financially sound, and we expect an accelerated Norwegian expansion, with a Webdoc launch in the neighboring country by H2’21 or early 2022. Carasent merits a premium, as it has >90% recurring revenues in a non-cyclical and steadily growing market, coupled with net retention numbers of 115-120%.
We estimate that Carasent will grow by >70% in 2021 (30% organically), not accounting for
additional acquisitions that probably will be announced later this year. Carasent trades at
EV/Sales 18x on 2021E, which might look pricey in the short-term. However, we argue
that investors have a good chance of earning approximately the growth rate going forward,
as the durability and duration of the profitable growth add cushion in the case of multiple
We increase our base case to NOK 55 (40).
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