BOUVET - THE BEST OF THE BEST
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BUY
Bouvet - The best of the best
Bouvet had long underperformed its key peers this year, as fears of slowing recruitment and a deterioration of the underlying margin lingered. Q3 blew all doubters out of the water, with an EBIT beat of >20% to both us and consensus. Utilization came in at record high levels and the negative hourly service price vs. salary increase started to reverse for the first time since the onset of COVID. Although other operating costs are normalizing, Bouvet posted a Q3 EBIT margin of ~11%, in-line with the record quarter last year. With better than feared profitability and higher than anticipated recruitment, we now anticipate ~15% revenue growth in ‘22e and lift our ‘22e EBIT estimate by ~8%. We raise our TP to NOK 85 p.sh equal to ~22x ‘22e EBIT.
BUY
Bouvet - The best of the best
Bouvet had long underperformed its key peers this year, as fears of slowing recruitment and a deterioration of the underlying margin lingered. Q3 blew all doubters out of the water, with an EBIT beat of >20% to both us and consensus. Utilization came in at record high levels and the negative hourly service price vs. salary increase started to reverse for the first time since the onset of COVID. Although other operating costs are normalizing, Bouvet posted a Q3 EBIT margin of ~11%, in-line with the record quarter last year. With better than feared profitability and higher than anticipated recruitment, we now anticipate ~15% revenue growth in ‘22e and lift our ‘22e EBIT estimate by ~8%. We raise our TP to NOK 85 p.sh equal to ~22x ‘22e EBIT.