From MoneyWeek · · 1m 30s
Baltic Classifieds could boost your portfolio
A dominant classifieds operator in fast-growing Baltic states offers strong returns and reasonable valuation.
In brief
A dominant classifieds operator in fast-growing Baltic states offers strong returns and reasonable valuation. Baltic Classifieds dominates online marketplaces in Lithuania, Latvia and Estonia, which are growing faster than Western Europe, making it an attractive investment at current valuations. Originally reported by…
Baltic states outpacing Western Europe
Lithuania's GDP now rivals Italy's, while Estonia's approaches Portugal's. The Baltics have quietly built strong productivity and growth since joining the EU in 2004.
Baltic Classifieds dominates the region
The company operates 14 websites across car sales, jobs, real estate and professional services. Its sites are market leaders with no major competitors in many categories.
Network effects drive massive margins
Each Baltic resident visits the group's websites about ten times monthly. This dominance created 68% operating margins in 2026 and double-digit returns on capital employed.
Three growth levers ahead
Rising wages in the Baltics will boost activity. The company is also investing in technology, finding new monetisation partnerships, and selectively acquiring competitors to fill portfolio gaps.
Strong financials and reasonable valuation
Sales have more than doubled since 2021, earnings per share increased tenfold, and net debt is declining. The stock trades at 15.5 times 2028 earnings with a 2% dividend.
Technical setup supports buying now
The share price has outperformed the market over one, three and six-month periods and trades above its 50 and 200-day moving averages. Current price is 2.45 euros.
The short version
Baltic Classifieds dominates online marketplaces in Lithuania, Latvia and Estonia, which are growing faster than Western Europe, making it an attractive investment at current valuations.
