Inderes initiates coverage of storage company Cityvarasto with a Buy recommendation and a price target of 17 euros. The research house considers the stock attractively valued relative to the company’s growth prospects, strong market position and limited risks.
Cityvarasto has a market share of around 30 percent in Finland and has historically increased revenue by approximately 20 percent annually. Inderes expects revenue to grow by 15 percent to 31.3 million euros in 2026 and adjusted EBITDA to reach 12.7 million euros. At the same time, the research house sees some risk of a profit warning due to weaker profitability in the ancillary services.
For the 2026-2030 period, adjusted EBITDA is expected to increase by an average of 11 percent annually. The stock trades at around 10 times forecast 2027 EBITDA, representing a discount of 25-33 percent compared with European peers. Inderes considers the discount unjustifiably large and sees significant long-term return potential, even without a higher valuation multiple.
