Buy Kinnevik, recommends investment bank Carnegie in “stock case of the week”. The bank’s analysts believe that after three years of declining net asset value, it will turn upward this year. They are focusing on the fact that core holdings are growing rapidly and approaching break-even.
Kinnevik is a Swedish investment company that focuses on digital consumer services in emerging markets. It has investments in companies such as Zalando, Tele2, and Babylon Health. Over the past few years, Kinnevik has faced challenges as some of its investments have underperformed, leading to a decline in its net asset value.
However, Carnegie’s analysts see potential for a turnaround in Kinnevik’s fortunes. They point to the fact that the company’s core holdings are experiencing strong growth and are on track to break even. This is significant because it indicates that Kinnevik’s investments are starting to pay off and could lead to an increase in its net asset value.
One of the key reasons behind Carnegie’s recommendation to buy Kinnevik is the company’s focus on digital consumer services in emerging markets. These markets have high growth potential as more people in these regions gain access to the internet and smartphones. This presents a significant opportunity for companies like Kinnevik to capitalize on this trend and generate substantial returns for investors.
Additionally, Kinnevik’s investments in companies such as Zalando, Tele2, and Babylon Health have the potential to drive future growth. Zalando is a leading online fashion retailer in Europe, Tele2 is a telecommunications company with a strong presence in emerging markets, and Babylon Health is a digital healthcare provider with a growing customer base.
Overall, Carnegie’s recommendation to buy Kinnevik is based on the company’s strong growth prospects in digital consumer services in emerging markets. With its core holdings showing signs of growth and nearing break-even, Kinnevik is well-positioned to deliver solid returns for investors in the coming years. Investors looking for exposure to high-growth opportunities in emerging markets may want to consider adding Kinnevik to their portfolios.