We re-initiate coverage with a BUY and NOK 41 target price. Otovo aims to become Europe’s no.1 residential solar provider and is currently hitting the ground running in six countries. We model ~20x revenues growth the next five years, with EBITDA breakeven in 2023e and 15% EBITDA margin by 2025e. If this materializes, we argue the cost of capital will contract significantly (we currently apply 20%), and consequently the upside would be even higher.
