Inwit Is a Good Play to Navigate the Inflationary Environment; Dividend Up 7.5%; FVE Maintained

Inwit comfortably met its 2021 financial guidance, with revenue at the low end of the guided range but EBITDA (after leases) and free cash flow exceeding expectations. For 2022 management expects revenue growth to be slightly below 10% and EBITDA growth in the midteens, in line with our forecasts. Inwit’s tenancy ratio passed the 2.0 times mark for the first time at 2.01 times and we expect it to end the year with a tenancy ratio above 2.2 times. We believe this is a good time for investors to buy shares in a business that presents growing cash flows with high visibility, expanding EBITDA margins (66% after leases in 2021) and strong inflation protection. Inwit also announced 7.5% growth in its dividend to EUR 0.3225, so it might be interesting for investors looking for exposure to growing dividends. We maintain our EUR 10.70 fair value estimate, which currently implies 20% upside.