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Alcadon: Q2: Betters our estimates, earnings upgrades to follow - SEB

Q2 earnings were well-ahead of our estimates: EBIT came in at SEK 17.6m, or 28% above our forecasts. Sales were 3.7% below our estimates, burdened by an estimated negative impact from Covid-19 of "-1.5% to -3%" in the period. Mechanically, the EBIT deviation corresponds to a 9% upgrade to our full-year 2020 estimates. We argue our case is intact. The equity remains valued at steep discounts to its peers as well as to our SEK 30 mid-point DCF value per share.

Q2 earnings were well-ahead of our estimates: EBIT came in at SEK 17.6m, or 28% above our forecasts. Sales were 3.7% below our estimates, burdened by an estimated negative impact from Covid-19 of "-1.5% to -3%" in the period. Mechanically, the EBIT deviation corresponds to a 9% upgrade to our full-year 2020 estimates. We argue our case is intact. The equity remains valued at steep discounts to its peers as well as to our SEK 30 mid-point DCF value per share.
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