Urb-it: Delivering emission-free value - ABG
Strong structural underlying market growth
Approaching break-even by Q3’23e
Initiating coverage with a fair value range of SEK 2.8-13.7
As e-commerce continues to grow, consumers are becoming more ‘e-com savvy’, demanding best-in-class services. Fast, flexible and accurate last-mile deliveries have thus become essential. Moreover, consumers’ preference for emission-free alternatives is increasing. Consequently, the last-mile delivery market is growing fast. One company ready to reap the benefits of this structurally-growing market is Urb-it. Urb-it differentiates itself from the competition with its non-use of engine-vehicles, making it a 100% CO2e-free last-mile delivery alternative. Under its current CEO, Kevin Kviblad, the company has gone through a strategic shift, leaving Sweden to focus on France and the UK where the group has signed important partnerships with e.g. DHL, La Poste, Amazon Logistics, AliExpress, and Zalando. We expect this to be the start of an exciting growth journey over the coming decade.
We initiate coverage with a fair value range of SEK 2.8-13.7. Our range is derived from three-stage DCF scenarios. Urb-it currently trades at 6.8x, 3.0x and 1.7x EV/Sales on our ’22e, ’23e and ’25e, respectively.
Länk till analysen i sin helhet: https://www.introduce.se/foretag/urb-it/Equity-research/2021/9/urb-it---delivering-emission-free-value/