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

Ratos AB (publ) is a seasoned private equity firm with a long history of investing in mid-sized companies across the Nordic region, particularly in Sweden, Finland, Denmark, and Norway. The firm focuses on buyouts, turnarounds, and add-on acquisitions, targeting companies with a strong presence in various sectors, including industry, construction, services, consumer, and technology. With a strict investment criteria, Ratos avoids early-stage companies, as well as those operating in sensitive areas such as arms, pornography, or environmentally detrimental industries.

Ratos investment strategy is characterized by a preference for taking significant stakes, often with a minimum holding of 20%, and securing a seat on the board. The firm typically invests between SEK250 million and SEK5000 million in companies with sales values ranging from SEK300 million to SEK5000 million and EBITDA exceeding SEK50 million. With a long-term approach, Ratos holds its investments for 5-10 years, allowing for strategic restructuring and growth.

Analyzing the current market data, Ratos stock (RATO-B) is trading at SEK 40.00, with a 20-day SMA of SEK 38.69, indicating a positive trend. The 50-day and 200-day SMAs stand at SEK 34.29 and SEK 33.02, respectively, further supporting the bullish sentiment. With an ATR of 1.03, representing a 2.57% volatility, the stock has shown resilience, trading near its 52-week high of SEK 40.00. Given the current P/E ratio of 25.68 and a forward P/E of 10.74, the market anticipates a significant earnings growth.

Combining technical and fundamental analysis, a forecast for Ratos AB (publ) suggests a potential upside. The companys market capitalization stands at SEK 12,607.05 million, with a relatively low RoE of 3.91%. However, the forward P/E ratio indicates a expected improvement in earnings. Assuming the firm continues to execute its investment strategy effectively, and considering the positive trend in the stock price, a potential target price could be SEK 45-50 in the next 6-12 months, representing a 12.5-25% increase from the current price.