Nordea reiterates its buy rating for IT consultancy Addnode but has lowered its price target to SEK 120 from SEK 140 ahead of the Q1 report. According to an equity research note, the adjustment is primarily driven by lower valuation multiples among peer companies.
Forecast revisions remain limited and are mainly fueled by currency effects. The bank also notes that significant swings in reported earnings per share are due to low comparative figures.
Addnode is currently trading at a discount to its Nordic peers, where the median valuation stands at approximately 19x EV/EBITA based on 2026 estimates. This comes despite a business model characterized by a high share of recurring revenue, potential for margin expansion, and growth through acquisitions.
Nordea highlights the company's strong track record of bolt-on acquisitions and anticipates sales growth of 6 percent from future, as-yet-unannounced deals.
Furthermore, an increasing share of proprietary software and growing recurring revenue are expected to drive scalability and higher margins over time.
Addnode Group AB (publ) is Sweden- based company primarily engaged in acquiring, operating and developing knowledge-led companies that digitize society. The Company scope of activity includes delivering digital solutions that enable the design, production, management and administration of a sustainable society. The operations are organized into three divisions. Design Management is a global supplier of digital solutions and services for design, Building Information Modeling (BIM) and product data to architects and engineers in the manufacturing, construction, construction and process industries. Product Lifecycle Management is a global supplier of digital solutions to digitize the entire life cycle of a product or facility from idea, design, simulation and construction to sales, aftermarket and recycling. Process Management is a supplier of digital solutions to the public sector.
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