I have been very bullish on LInkfire. I think Linkfire is the most interesting IPO from Sweden this year. The whole investment case is summarized in the article below. There are several catalysts for the company in the next two months – see the article below.
Today Pareto initiated its coverage for LInkfire with 59 pages report. Below is their front page summary of the report:
|Linked for growth|
|Linkfire has established itself in a market-leading position, with a best-in-class product, unique partnerships and an unmatched customer base, leaving it a potentially long runway of revenue growth. We initiate coverage of Linkfire with a Buy rating and a target price of SEK 16. We see potential acquisitions, new partnerships and strong organic growth as near term stock price triggers. |
Estimating a 60% organic sales CAGR through to 2025
Linkfire has established itself in a leading position within digital music marketing, with all three major music labels using its platform and with it acting as a key traffic generator to some of the leading global digital service providers (DSPs). We believe Linkfire’s market position together with existing and new partnerships should allow it to scale significantly in the coming years, and we forecast a 60% CAGR through to 2025.
Addressing the market for streaming entertainment content
Linkfire addresses the broader market for streaming entertainment – a market that has evolved into a USD 150-175bn opportunity in less than a decade. We expect the market to double over the next decade.
We initiate with a Buy rating and a price target of SEK 16
Our valuation is based on a combination of DCF and peer valuations, using sets of publicly traded global software peers and a DCF valuation that provides support for an enterprise value of DKK 730m (SEK 1.0bn).