Better Collective: Betting on 2020 - Adding to our Conviction Buy List

As the world’s No. 1 sports betting affiliate with clear competitive advantages and less regulatory risk than its peers, Better Collective offers investors an attractive, shareholder-friendly exposure to an undervalued industry with a stronger outlook than the challenged casino sector. Furthermore, the 2020 outlook for Better Collective looks very promising with several catalysts, such as the UEFA EURO 2020 and the US operations kicking off. We expect the strong underlying performance to continue, with rapid growth and a scaling business model.

We also expect value-adding acquisitions, given the strong acquisition pipeline and the improved financial position. The valuation is currently very attractive with an EV/EBITDA multiple of 9x on the 2020 estimates, excluding acquisitions. We have raised our base case to SEK 110 (100) per share and added Better Collective to our Conviction Buy List.