Redeye uskoo edelleen.
The Q4 report handsomely beat our forecast both regarding revenue and profits. The report was strong, and we now see a confirmation on a positive shift in the growth trend. We believe the market continue to focus on the wrong things, and see a significant potential from current valuation levels.
The report from Mr Green was considerable stronger than expected, both regarding revenue growth and profitability. Primarily we saw a larger uptake in Western Europe than we had expected, probably due to the increased efficiency and marketing focus we have already discussed in earlier research reports. We believe today’s report show that the negative growth trend Mr Green previously experienced has shifted.
A high uptake in both deposits and active clients confirms the growth trend shift. This fact shows that the sales increase are not a temporary effect and should at least continue in the coming quarters. We will look into our growth forecast further, but as the positive deviance was so large, we might have to adjust them upwards.
The story of Mr Green 2.0 continues, and we believe the positive fundamental development will continue. During 2016 the company expanded their product offering, launched their new technical platform, got listed on the main markets and made some significant recruitment for the Malta office. Mr Green now enters the Danish market through the recent acquisition and during 2017 they are looking into a re-launch of the Garbo brand. We feel confident that the company is moving in the right direction and see an increasingly positive outlook for 2017, yet we fell that the market focuses on the wrong things when it comes to Mr Green. The current sentiment regarding the stock creates a clear opportunity for the savvy investor. Our Base-case valuation, prior any forecast adjustments from the acquisition and after the report, stand at 63 SEK per share.
http://www.redeye.se/analys/today/mr-gr ... ket-see-it