Lifco: Update For 2025E And The Upswing For The ADR

2025-03-02 09:42:45 ET

Summary

• Lifco's Q4'24 results were strong, with a 10.6% revenue increase and a 9.5% EBITA growth, despite challenging market conditions.
• The company's valuation remains high, leading to a "Hold" rating, with a new price target of 250 SEK/share, reflecting higher expectations for 2025-2027.
• Lifco's management and acquisition strategy are solid, but the company's current multiples suggest potential returns below 10-11% per year.
• Despite Lifco's strong fundamentals and growth, the stock is overvalued, making it less attractive for new investments at this time.

Dear readers/followers,

I have previously covered Lifco ( OTCPK:LFABF ), a business on the industrial conglomerate side. The company came in with 4Q results towards the end of January, which sent the stock into a slight upswing. However, due to trends, I can only decipher as different liquidity, the ADR of the stock that I cover, LFABF, has actually swung up 40% since my last article in December. You can find that article here .

Now, it's important for me to show that the company's native share actually isn't up over 35% YTD, as the ADR shows . The native is barely up over 12%, which is great, but also not even close to as much as is reflected here. As I said, I believe this has to do with the liquidity for the ticker, which as you can see on Seeking Alpha for both the LFABF ticker and the LFCBY ticker is at lower liquidity. LFCBY is, judging by numbers and trends, somewhat higher liquidity, but this also isn't reflected in the company's ADR returns, which are up similar numbers....

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