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Actic: Ongoing recovery, raised cost assumptions - SEB

We reiterate our SEK 19 mid-point DCF-based equity value. We believe Actic Group’s turnaround post the lifting of Covid-19-related restrictions (closed gym clubs) looks set to continue. Reflecting prevailing inflation rates, we have adjusted our cost growth assumptions in H2 this year. We now assume zero net club openings in H2 2022, as well as in 2023. In all, we lower our revenue forecasts by 1-2% and our EBIT estimates by 8% p.a. in 2023-24.

We reiterate our SEK 19 mid-point DCF-based equity value. We believe Actic Group’s turnaround post the lifting of Covid-19-related restrictions (closed gym clubs) looks set to continue. Reflecting prevailing inflation rates, we have adjusted our cost growth assumptions in H2 this year. We now assume zero net club openings in H2 2022, as well as in 2023. In all, we lower our revenue forecasts by 1-2% and our EBIT estimates by 8% p.a. in 2023-24.
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