Assessing Atea (OB:ATEA) Valuation After Securing NOK 500m Annual Tradebroker IT Contract

Atea (OB:ATEA) just landed a sizeable win in Norway, securing a three year IT infrastructure contract with Tradebroker, plus an optional four year extension, worth about NOK 500 million annually.

See our latest analysis for Atea.

The deal lands at a time when momentum is already picking up, with a 30 day share price return of 7.3 percent and a five year total shareholder return of 71.9 percent, signalling confidence in Atea’s long term trajectory.

If this kind of contract win has your attention, it could be a good moment to see what else is moving and explore fast growing stocks with high insider ownership.

With shares up strongly in recent years and trading only slightly below analyst targets, investors face a key question: Is Atea still undervalued on its fundamentals, or are markets already pricing in much of its future growth?

Most Popular Narrative Narrative: 4.9% Undervalued

With Atea closing at NOK161.6 against a narrative fair value of NOK170, the gap is narrow, but the growth story behind it is ambitious.

Atea is expected to experience higher than normal revenue growth in 2025, driven by capturing market share and the activation of new frame agreements in countries like Denmark and Finland. This will positively impact their revenue figures.

Read the complete narrative.

Want to see how aggressive revenue expansion, rising margins and a lower future earnings multiple still combine into upside from here? The full narrative walks through the exact growth path, profit uplift and valuation reset that aim to justify this fair value.

Result: Fair Value of $170 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, this upside depends on maintaining margins, with hardware mix shifts and shifting software vendor incentives both capable of undermining the growth narrative.

Find out about the key risks to this Atea narrative.

Another Angle on Valuation

Analysts see only a modest 4.9 percent upside to NOK170, but our DCF model is far more optimistic, putting fair value closer to NOK301 and implying Atea trades at a steep discount. Is the market underestimating its cash flow power, or are the growth assumptions too bold?

Look into how the SWS DCF model arrives at its fair value.

Build Your Own Atea Narrative

If you see things differently or prefer to dive into the numbers yourself, you can build a full narrative in just minutes: Do it your way.

A great starting point for your Atea research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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