Tagmaster Q2: Initial take – stronger than expected – Redeye


Redeye’s first comments following this morning’s Q2 report from Tagmaster. Tagmaster shows substantial progress in yet another quarter. The report showed strong organic growth and a better-than-expected gross margin. Sales aligned with our expectations, while the positive gross margin development and lower cost brought a solid beat on both EBITDA and EBIT levels. We will likely make minor sales adjustments to our estimates while increasing our expectations on the gross margin for the rest of the year. We expect to make a slight upward adjustment to our current Base case of SEK 30 per share. This is the third quarter in a row that Tagmaster has shown solid improvements, and the company’s current valuation continues to be very low and not considering much of its potential.