Pareto Securities repeats its Hold recommendation for Storytel but raises its target price to SEK 115 from SEK 110 following the company’s third-quarter report.
The report was stronger than expected, with revenue exceeding Pareto’s forecast by 4 percent and consensus by 5 percent. The external publishing business was the main contributor, while the streaming business also performed somewhat better than expected.
The streaming business recorded its largest addition of subscribers since the third quarter of 2023, while average revenue per user increased.
Pareto raises its earnings forecasts marginally and assesses that the short-term outlook remains strong.
However, the research house expects organic growth to slow in 2027 as growth in the external publishing business normalizes. As a result, the risk-reward profile is considered balanced.
