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Alcadon: A flying start for 6X, organic growth headwinds - SEB

We believe Alcadon’s acquisition of 6X holds substantial growth and earnings potential, as corroborated by better than expected performance in Q1 (first quarter as consolidated). The pandemic grip holds back on projects within the real estate market segment, implying negative organic growth still. We have cut our organic sales assumptions, resulting in 5% lower EBIT in 2021 (largely unchanged for 2022-23). We reiterate our midpoint DCF of SEK 50.

We believe Alcadon’s acquisition of 6X holds substantial growth and earnings potential, as corroborated by better than expected performance in Q1 (first quarter as consolidated). The pandemic grip holds back on projects within the real estate market segment, implying negative organic growth still. We have cut our organic sales assumptions, resulting in 5% lower EBIT in 2021 (largely unchanged for 2022-23). We reiterate our midpoint DCF of SEK 50.
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