Berenberg upgrades Karnov Group stock, sees 30% EBITA margin by 2027 By Investing.com

On Tuesday, Berenberg upgraded Karnov Group AB (KAR:SS) stock, a provider of information services and products in Scandinavia, from ‘Hold’ to ‘Buy’. The firm also increased the price target for the company’s shares to SEK100.00, up from the previous SEK84.00.

The upgrade follows a recent decline in Karnov’s share price, which dropped by 15% after an acquisition offer from Greenoaks and Long Path at SEK84 per share was not successful last month. Berenberg sees this as an attractive entry point for investors, noting that the company’s valuation is now significantly below that of its peers and its own historical levels.

The firm’s optimism is partly based on Karnov’s potential to achieve its synergy target by 2027, which is expected to push the EBITA margin above 30%. Berenberg also highlighted the company’s prospects for organic growth, further acquisitions, and continued margin enhancements as additional reasons for the upgrade.

According to Berenberg, Karnov is entering a “harvest period” characterized by increasing margins and cash flow. This period is seen as a prime opportunity for investors to purchase shares at a favorable valuation.

The new price target of SEK100 represents Berenberg’s confidence in Karnov’s ability to reach its financial targets and improve its market position in the coming years.

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