Buy Signal on Adevinta (ADE-NO)
Adevinta is a € 10.5 Bn market company, which specializes in the distribution of online classified advertisements outside the Nordic countries (France, Spain, Brazil, Italy, Austria, Ireland, Hungary, Mexico, Chile, Belarus, Colombia, Dominican Republic, Morocco, Tunisia, the United Kingdom and Germany). In 2019, Schibsted group, spinned off Le Bon Coin which came under the control of a new entity called Adevinta which went public on April 10th, 2019. Adevinta announced the acquisition of eBay Classifieds Group, the classifieds branch of eBay for € 8 bn in July 2020.
Besides Leboncoin, Adevinta owns many brands such as Paycar, L’argus in France, or Grupo AZ in Brazil and become the world leader in online classified business after the Ebay's classified unit acquisition. It is expected to post a revenue of €1.5 Bn in 2021 and €1.85 Bn in 2022 coupled with an operating margin of 25% and 30%. The EPS growth is expected to grow by 60% in 2022 and by 30% in 2023.
Adevinta is a quality growth business with strong positionning as it owns the best brands in the classified business.
Short term catalyst : Acquisitions, Ebay classified arms integration.
This signal looks consistent with the Major Bullish Trend in the European Internet / media sector.