Alcadon Group, the supplier of premium network components and solutions, reported Q2 adjusted EBITA of SEK 32.6m (31% ahead of our SEK 25m forecasts) corresponding to a solid underlying margin of 7.7% (SEBE: 5.3%). While these results reflect weaker-than-expected organic sales of 7% (SEBE: 17%), gross margins are up 2.5pp y/y to 26.7% (SEBE: 24.8%). Cash flow are particularly strong too. We are contemplating earnings upgrades. Our mid-point value is SEK 80.
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