Original-Research: Scandinavian Astor Group AB (von NuWays AG): BUY

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Original-Research: Scandinavian Astor Group AB - from NuWays AG

12.08.2025 / 09:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of NuWays AG to Scandinavian Astor Group AB

Company Name: Scandinavian Astor Group AB

ISIN: SE0019175274

Reason for the research: Update

Recommendation: BUY

from: 12.08.2025

Target price: SEK 56.00

Target price on sight of: 12 months

Last rating change:

Analyst: Henry Wendisch

Unjustified summertime weakness, BUY the dip.

Astor's share price has continuously declined over the recent summer, which

is fundamentally unjustified in our view, given almost no relevant news flow

and no signs of a weakening current trading. Here's our take:

Astor's shares have declined by 40% since the latest peak in June.

Fundamentally, this seems highly unjustified in our view. On the contrary,

Astor has produced positive news flow with sound order intakes (Marstrom:

SEK 21m, Oscilion: SEK 15m, Airsafe: SEK 68m, NSG: SEK 35m), closings of

Carbonia and NSG/Cesium and improved access to capital (SEK 320m capital

increase and SEK 128m credit facility). Consequently, Astor looks at a well

equipped M&A war chest and we thus expect further positive news flow going

forward.

Therefore, the current weakness comes as a surprise for us. While the

reasons behind this remain speculative, one can only guess a lower investor

interest and consequent subdued trading activity during the seasonal holiday

season responsible for the decline. Historically, this thesis aligns with

weak returns of the Swedish stock market in the summer.

The share price decline led to an unjustified multiple compression, with

Astor now trading at a very attractive valuation, especially compared to the

peer group. Large defence OEMs trade at 20-29x FY'25e EBITDA (13-22x FY'26e

EBITDA), which is in line with Astor's multiples, however, only based on

reported figures. If the recent, highly profitable M&A is included on a

pro-forma basis, Astor currently trades at 13.7x FY'25e EBITDA (10.5x

FY'26e), which implies 40-50% discount to relevant peers. Only two months

ago, Astor was trading on par with its peers, based on pro-forma figures.

Ukraine talks only impacts news flow, not fundamentals. The planned,

upcoming peace talks between Trump and Putin, are currently causing

volatility in defence stocks, also at Astor. In our view, this is based on

the assumption that potential peace should lead to lower defence spending.

However, with long-term spending cycles, already approved defence programs

and the recent upgrade of defence spending targets, this does not seem

likely, in our view. Therefore, we regard the share price reaction newsflow

driven and not fundamentally justified.

In sum, Astor's shares now offer an attractive and potentially unique entry

opportunity for new investors as well as good way to downward dilute the

entry price for existing investors. Therefore, we reiterate our BUY

recommendation with unchanged PT of SEK 56.00, based on DCF.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=f8053bd892f437297b8488e6eee30a02

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenskonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befinden sich in der vollständigen Analyse.

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2182494 12.08.2025 CET/CEST

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