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Balco: A green deal - SEB

Following Q3 earnings that were above our forecasts, we raise our 2022-23 EPS estimates by about 2% p.a., which reflects increased operating leverage and gross margin assumptions. As corroborated by its strong order intake (also better-than-expected by us), we argue for increased earnings visibility going into 2022. Having lowered our risk premium (from 4.5% to 4%), we raise our midpoint DCF-based equity value to SEK 135, from SEK 125.

Following Q3 earnings that were above our forecasts, we raise our 2022-23 EPS estimates by about 2% p.a., which reflects increased operating leverage and gross margin assumptions. As corroborated by its strong order intake (also better-than-expected by us), we argue for increased earnings visibility going into 2022. Having lowered our risk premium (from 4.5% to 4%), we raise our midpoint DCF-based equity value to SEK 135, from SEK 125.
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