Europris (AO) | Buy | Q2 miss, margin progress not enough

研报英文原文证据摘录

Europris (AO) | Buy | Q2 miss, margin progress not enough

Europris Buy | Target Price: NOK110.00

Company description Management

Europris is a leading discount variety retailer operating c. 289 stores, located in Espen Eldal, CEO

Norway and 92 stores located in Sweden. Its store offers a broad assortment (12 Stina Byre, CFO

explicit product categories) of low priced private label, non-branded and Key shareholders

branded goods. Free float 100.00%

Folketrygdfondet 12.30%

Investment case Valuation methodology

Europris is the Norwegian market leader in the structurally We lift our target price from NOK105 to NOK110, reflecting OoB

growing variety discount segment. estimate revisions and a 12-month roll-forward to January 2027.

The segment is relatively protected from e-commerce margin Our valuation is based on a DCF for Europris Norway (WACC 9%,

dilution due to low-ticket items, campaign-driven sales, a high LTG 2%) and a multiple-based valuation for OoB (5.8x 2028E

share of private labels, and challenging Nordic logistics. EV/EBITDA, 15% discount).

Europris' investments in specialist e-commerce pure players is A +/-1pp change in OoB’s 2026E EBITDA margin would move our

adding a new dimension to growth though a new vertical with target price by approximately +/-2% (NOK2).

shared sourcing and technology. Risks to our rating

Catalysts Europris has historically posted a volatile sales and operational

Improved earnings quality with scale and new, automatised performance.

central warehouse materialising. About 60% of goods are sourced in foreign currency. A sharp

Nordic expansion by integrating ÖoB. depreciation of the NOK would have a negative impact on

Extraordinary dividends and/or increased dividend payout margin and/or volumes.

policy.