Today’s industry advises to subscribe to the low-price chain Rusta’s IPO, but also to be vigilant about selling the stock quickly because it can reach the target price quickly. “Be prepared to sell quickly – perhaps already on the first trading day,” writes the newspaper. Di believes that the price tag on Rusta’s share is not a great find, but still worth signing up for.
This is because a substantial profit lift is likely to await after a weak last year, and because there is long-term growth potential as the low-price segment seems to be gaining market share. Based on Di’s calculations, the valuation of Rusta is expected to land at a p/e ratio of 17-20, depending on where the subscription price lands.
The subscription price is set within a range of SEK 43-50. “Should the share rush to SEK 60 at the IPO, however, the Rusta share is fully valued. Then it is time to realize the possible price gain”, writes Di.