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Lifeclean: Abundant growth opportunities - Redeye

Redeye initiates coverage of LifeClean International, a Swedish developer of high-level disinfection solutions that kills spores, fungus, biofilm, bacteria, and viruses. We see an attractive case with significant upside potential. The strong market fundamentals have improved with the current pandemic, and the company has the right ingredients to become a growth story.

Our Base case of SEK 16 represents an upside of +60% from current trading levels and
corresponds to a 2021E EV/S multiple of 7,3x and EV/EBITDA of 70x, respectively. Given
the transformation, the EV/S multiple is the most relevant, and the other EV multiples will
come down rapidly as the results improve in the coming years. The closest competitor
Tristel is currently trading at EV/S 8,4x and EV /EBITDA 28x for 2021E. The other large
listed competitors are not comparable due to both size and that they also have many more
fields of operation that are not comparable to LifeClean.
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