* Sales and adj. EBITA margin targets unchanged, new target "2030 adj. EPS SEK >20"
* 15% adj. EPS CAGR in target vs 5- and 10-year track records of 11%
* 21% upside to our 2028e adj. EPS based on the CAGR, M&A and buybacks explain this
Introdcuing an adj. EPS target of SEK >20 by 2030
Proact has released new financial targets ahead of the CMD later today (CET 13.30-17.30). Sales growth averaging 10% per year including M&A and EBITA margin >8% are unchanged. New target is to double adj. EPS between 2025-2030 meaning reaching “at least SEK 20 in adj. EPS 2030”. The adj. EPS growth implies 15% per year, vs 5-year and 10-year adj. EPS CAGR’s of 11% and our estimate of 8% between 2025-28e, meaning somewhat raised ambitions and 21% above our 2028e estimate (M&A and buybacks main explanation). Net debt/EBITDA should also be between 1-2x by 2030 vs current 0x.
Sales target likely the most demanding
Main challenge will likely be to deliver on the growth target as last 10-year annual growth has only been 5%, hence it will be interesting to get more clarity on how to achieve this on the CMD today. The share currently trades at 11.5x adj. P/E on 2026-27e, using today’s multiples on 2030 adj. EPS would imply SEK 230/share (59% upside from current close, or 12% per year).