TagMaster: Ready to scale up
TagMaster's hard work to optimize its cost structure is paying off and it is now prepared to gain leverage on its sales. A major acquisition target is on the radar, which could add revenues of about SEK 150-180 million. A possible new share issue of the order of SEK 130m could provide a very interesting entry point for investors. At our IFRS-adjusted estimates, TagMaster trades at 12x EV/EBIT 2019E and 8x for 2020E.
In this research update, we provide insights from the Annual Report, our financial projections, and view of the valuation.