We reinitiate coverage of Schibsted, the Nordic powerhouse of online classifieds, with a BUY and NOK 440/A-sh TP. Although 65% of Schibsted’s value is linked to its stake in Adevinta, the stub is attractive at 12.5x 2021 EBITDA. With a growing share of classifieds in its earnings mix and the opportunity to finance M&A by reducing its stake in Adevinta, there is runway for multiple expansion over time that could benefit the patient investor.
