(RATO-A) Ratos (publ) - Ratings and Ratios

Ratos AB (publ) is a seasoned private equity firm specializing in strategic investments, with a focus on buyouts, turnarounds, and mid-market transactions in the Nordic region, particularly in Sweden, Finland, Denmark, and Norway. The firm targets medium-sized, unlisted companies in various sectors, including industry, construction, services, consumer, and technology, while avoiding early-stage investments and companies involved in the arms industry, pornography, or environmentally detrimental activities.

The firms investment strategy is characterized by a preference for taking significant stakes, typically between 20% and majority ownership, and seeking a seat on the board. Ratos AB (publ) has a long-term investment horizon, usually holding its investments between five to ten years, and looks for companies with substantial equity investments, significant sales value, and robust EBITDA. With a history dating back to 1934, the firm has established itself as a prominent player in the Nordic private equity landscape, operating from its base in Stockholm, Sweden.

From a technical analysis perspective, Ratos AB (publ)s stock price is currently at 42.10 SEK, with its 20-day SMA at 41.52 SEK, indicating a relatively stable short-term trend. The 50-day SMA and 200-day SMA are at 36.86 SEK and 35.13 SEK, respectively, suggesting a longer-term uptrend. The ATR of 0.77 SEK, equivalent to 1.82%, indicates moderate volatility. Given the current price is at its 52-week high, a potential forecast could be that the stock continues to consolidate or slightly adjust, given the relatively high P/E ratio of 28.36. However, the forward P/E of 11.86 suggests potential for growth as earnings are expected to improve.

Combining technical and fundamental data, a forecast for Ratos AB (publ) could be that the stock will maintain its upward momentum in the short term, driven by the firms strong track record and the favorable Nordic private equity market conditions. The expected improvement in earnings, as indicated by the forward P/E, could further support the stock price. However, the relatively high current P/E and the moderate volatility, as indicated by the ATR, suggest that investors should be cautious and monitor the stocks performance closely. A potential target price could be around 45-50 SEK, representing a 7-19% increase from the current price, assuming the firm continues to deliver on its investment strategy and the overall market conditions remain favorable.