Kepler Cheuvreux has reiterated its buy recommendation for Boozt, maintaining an unchanged target price of SEK 120 following a report that highlighted strong profitability and cash flow, despite continued weak sales growth.
Sales increased by 3 percent in local currency during the third quarter, while inventory levels have now normalized. Ahead of Black Week and the holiday sales period, uncertainty remains high. Kepler emphasizes that for the stock to develop more strongly as a growth case, a faster sales pace is required, even though improved margins are expected to support short-term results.
Kepler Cheuvreux forecasts an average annual sales growth of 3 percent for the period 2024-2027, and an adjusted EBIT growth of 5 percent. The stock is trading at a price/earnings ratio of 18 and an EV/EBIT multiple of 13 based on 2026 projections, which is considered well below historical levels. Free cash flow is expected to reach at least SEK 500 million in 2025, corresponding to a yield of about 6 percent, or 4.5 percent excluding one-off items.
Despite a challenging consumer market and uncertain earnings outlook, Kepler still sees upside potential in the stock, thanks to strong margins and a solid balance sheet.
