Strong Financial Performance Despite Missed Estimates: Adevinta ASA (ADE) 4Q Earnings Report

Adevinta ASA on Smartkarma

Smartkarma, an independent investment research network, provides coverage of Adevinta ASA, a company that has recently received a firm offer from Blackstone and Permira. According to analyst Jesus Rodriguez Aguilar, the offer of NOK 115 per share is considered fair by the board, but they cannot recommend it. The offer represents a 52.6% premium to the 3-month VWAP and is valued at 18.3x EV/NTM Fwd EBITDA, which is higher than its comparable companies. The three largest shareholders, who hold 72.3% of the company, have already expressed their support for the deal, making it a done deal. Aguilar sets his target price at NOK 115 and believes the consortium could achieve an IRR of 17.8% by year 8.

Another analyst on Smartkarma, Janaghan Jeyakumar, CFA, provides insight on the potential changes to the SE600 index, which includes Adevinta ASA. Jeyakumar notes that there could be six additions and deletions to the index during the December 2023 review, with a potential one-way of around US$80 million. The SE600 index is widely followed in Europe and is rebalanced quarterly. Jeyakumar also mentions that there could be two more intra-review changes after the December 2023 review.

In a separate report, Aguilar discusses the potential for a leveraged buyout (LBO) of Adevinta ASA by the investor consortium. The non-binding bid, which includes Blackstone and Permira, has not yet been accepted by the company. However, Aguilar estimates that by applying a 30% premium, the potential offer price would be NOK 111.5 per share, representing an 18% IRR by year 8 for a leveraged buyer. Adevinta ASA currently trades at a similar valuation to its comparable companies, making it a fairly valued stock with limited downside risk. Aguilar recommends being long on the stock.

A look at Adevinta ASA Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Adevinta ASA, a company that provides Internet based services, has a long-term outlook that is looking positive according to the Smartkarma Smart Scores. The company has received a score of 3 for Value, indicating that it is considered to be a good value in the market. This is followed by a score of 1 for Dividend, suggesting that the company may not be providing high dividends to its shareholders.

In terms of growth, Adevinta ASA has received a score of 2, indicating that it has potential for growth in the future. The company has also been given a high score of 4 for both Resilience and Momentum, which suggests that it is capable of withstanding challenges and has a strong momentum in the market. Overall, Adevinta ASA‘s Smartkarma Smart Scores indicate a positive long-term outlook for the company, with potential for growth and resilience in the face of challenges. Adevinta serves customers worldwide, creating networks of people working together towards a common purpose across geographies and disciplines.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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