SB1 Markets repeats its Buy rating on audiobook company Storytel and raises its target price to SEK 135 from 124 following a strong quarterly report. This is stated in an analysis.
Revenue exceeded consensus by 4.7 percent and adjusted EBITDA by 1.5 percent. The number of subscribers increased by 80,000, of which 32,000 were in the Nordics, despite competition from Spotify.
SB1 raises its EBITDA forecasts for 2027-2028 by approximately 2 percent and sees reduced risk of Storytel missing its earnings target for the year.
The raised target price follows from shifting the valuation to 2027, despite the applied EV/EBIT multiple being lowered to 14x from 16x. The share trades at 12.1x expected EBIT based on the 2027 forecast.
The target price implies 15 percent upside.
