Research

Inderes Group - Headwinds in Sweden, but foundation is solid - SEB

By SEB

Inderes’ Q1 left a small positive mark driven by the Finnish operations. The Swedish business, however, still faces headwinds and the company struggles to take more meaningful positions in markets. However, the company is now reacting and we believe the story remains broadly unchanged: the Finnish business forms a solid foundation, but the upside potential lies in international growth, which is hard to predict.

Q1/25: mostly good but Swedish business and outlook are concerns

Our read from the Q1 result is that the AGM season looks to be more profitable for Inderes than we initially thought. Q1 saw a large number of AGMs while the volume of AGMs this year is tilted to Q2. Positively, the event business in Finland seems to have taken a step ahead. Sweden was again negative though with continued declining sales. This is partially due to churn in the research business. Also, in Finland, the market for commissioned research is not as promising as it was a few months ago. The recent turbulence will likely affect IPO activity, which means fewer potential clients; this leads us to cut our estimate slightly for the number of contracts.

Our view is largely intact – international expansion the (uncertain) potential

We find the Inderes story very much intact. The Finnish business forms the foundation with excellent customer retention and some growth potential still in certain products. Yet, the major Finnish potential lies in market growth, which is dependent on IPO activity. The Swedish and other international businesses hold significant potential. However, the company faces challenges in building its presence in markets. This will take more time than we previously assumed and estimates have high uncertainty.

Fair value range up slightly to EUR 20-22 (19-21)

Our fair valuation range rises slightly to EUR 20-22. This is driven by our peer valuation benchmark multiples while our DCF valuation remains unchanged.

Inderes operates in the financial industry. The company provides a community platform for investors and listed companies. Via the platform, users can communicate with each other and exchange investment tips. The customers consist of both companies and private individuals. In addition, the company offers analysis services and a basis for investment decisions. The largest operations are in the Nordic region.