Sinch AB (SINCH.ST): Organic GP growth and FCF trajectory to remain in focus; Sell

研报英文原文证据摘录

Sinch AB (SINCH.ST): Organic GP growth and FCF trajectory to remain in focus; Sell

Equity Research

18 June 2026 | 5:57PM BST

Sinch AB (SINCH.ST): Organic GP growth and FCF trajectory to remain in

focus; Sell

We update our estimates ahead of Sinch’s 2Q26 results on July 22, 2026 for FX Mohammed Moawalla

+44(20)7774-1726 |

(incremental c.1% tailwind for FY26) and continue to expect an uncertain macro mohammed.moawalla@gs.com

Goldman Sachs International

backdrop. While we refine the quarterly phasing of our organic GP growth and

Deepshikha Agarwal

EBITDA assumptions, now expecting organic GP growth of c.4% for 2Q, we keep our +1(212)934-6961 |

near to mid-term assumptions broadly unchanged and continue to expect organic deepshikha.agarwal@gs.comGoldman Sachs India SPL

GP growth of c.5% for FY26 and adj. EBITDA margin of 13.4% for FY26. Uzair Merchant

+44(20)7774-7645 |

Overall, we expect investors to remain focused on the pace of organic gross profit uzair.merchant@gs.comGoldman Sachs International

growth re-acceleration and the bridge to Sinch’s mid-term target of 7%-9% organic Ahlam Haouach

GP growth by FY27, as well as the sustainability of the Americas growth momentum. +44(20)7051-8714ahlam.haouach@gs.com|

As we make no major revisions to our estimates, our 12-month price target is Goldman Sachs International

unchanged at SEK 20, implying c.40% downside vs c.30% average upside potential

across our coverage. We remain Sell rated on Sinch, as we continue to see its

valuation as less compelling relative to the rest of our EU Software coverage given its

lower cash conversion.

At Sinch’s 2Q26 results, we expect investor focus to be on: (1) the demand

environment and visibility for the remainder of FY26, especially given the current