We do not expect Netcompany to provide any guidance for 2022 when reporting its Q3 results. The acquisition of Intrasoft is a bold move, which will create attractive business potential within digitalisation (EU), but also marks a change in M&A strategy, which raises a number of questions. Even so, we find it hard to see the transaction, isolated, not adding value. As to the Q3 performance, we expect Netcompany to have continued its solid revenue trend (18% growth y/y), while we expect the EBITA margin to decline to 24.3%, down from 28.1% y/y (company-compiled consensus:
24.5%). However, we stress that estimating profitability is made more difficult by the increased use of freelancers in Denmark, who add revenue but no/limited profitability. We leave our estimates unchanged, but lift our DCF- and peer-group-based valuation range to DKK 700-815 (DKK 655-760) due to multiple expansion within the peer group.
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