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Balco: Hoping for better market conditions in 2021 - SEB

Q4 was another tough quarter, with Covid restrictions affecting operations more than we had expected. Restrictions are also likely to impact operations in H1/21, making 2021 looking heavily back-end loaded and increasing estimate risks for the year. We have cut our EBIT estimate for 2021 by 6% and our valuation mid-point to SEK 98 (103). The balance sheet is strong and the decision to declare no dividend for 2020 heralds, in our view, further M&A.

Q4 was another tough quarter, with Covid restrictions affecting operations more than we had expected. Restrictions are also likely to impact operations in H1/21, making 2021 looking heavily back-end loaded and increasing estimate risks for the year. We have cut our EBIT estimate for 2021 by 6% and our valuation mid-point to SEK 98 (103). The balance sheet is strong and the decision to declare no dividend for 2020 heralds, in our view, further M&A.
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