Eniro Group is currently looking into a strategic overview of Dynava, with the goal of enhancing shareholder value. We view this initiative as very positive because it will strengthen the core business; Marketing Partner. Additionally, it signifies the management's commitment to efficient capital allocation and their dedication to delivering value to shareholders.

The management restructuring efforts of the past six months are beginning to yield results. Redeye anticipates an 8% EBITDA margin for the full year of 2023, an increase from the 5% margin forecasted in the previous update. Additionally, we have revised our EBITDA margin projection for 2024 to 15%.

Redeye reiterates a valuation range between SEK0.93 to SEK1.46 with a Base Case of SEK1.23. Eniro Group currently trades at an EV/Sales ratio of 0.2x, representing a substantial 92% discount compared to its peers' 2023 estimated values. Redeye considers Eniro to be a compelling deep-value opportunity with limited downside risk. The valuation gap relative to our Base Case now stands at 124%.

Eniro Group's enterprise value is SEK320m and maintains a healthy net cash position of SEK88m. Furthermore, it actively returns value to shareholders through dividends and share buybacks. Additionally, the potential sale of Dynava could lead to a substantial cash distribution to Eniro's shareholders in the future.