We upgrade Atea to BUY and set our TP at NOK 190/sh, implying a 6.5% FCF yield in 2022. We are above consensus despite assuming declining growth rates, gross margins and cash-conversion. We expect a continued improvement in Denmark, albeit slowly, and incrementally higher GP conversion in other markets, leaving us with a 16% adj. EBIT CAGR towards 2023 (vs. 19% ’15-20 excl. Denmark), which we find attractive for a stock trading at 16.2x 2021 EBIT.
