Bildkälla: Stockfoto

Balco Group: It is looking up - SEB

Based on customer dialogue in Sweden and Norway (mainly tenant-owned housing associations), Balco Group’s new CEO Camilla Ekdahl is guiding for stabilising markets and increasing order intake as of Q2. Also, cost inflation is rolling over. We have raised our financial estimates over our forecast period in 2023-25 and we now argue Balco shares trade at 9x 2023 EV/EBIT estimates (historical average of 12x). We reiterate our mid-point of SEK 80.

Based on customer dialogue in Sweden and Norway (mainly tenant-owned housing associations), Balco Group’s new CEO Camilla Ekdahl is guiding for stabilising markets and increasing order intake as of Q2. Also, cost inflation is rolling over. We have raised our financial estimates over our forecast period in 2023-25 and we now argue Balco shares trade at 9x 2023 EV/EBIT estimates (historical average of 12x). We reiterate our mid-point of SEK 80.
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