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Balco: Likely muted order intakes in near term - SEB

We downgrade our order intake forecasts in Q4 and in the year ahead. We believe rising interest rates and uncertainties surrounding financing costs for Balco’s key customers (tenant-owned housing associations accounted for 72% of sales in 2021) are a key concern in the near term. In all, we leave our financial forecasts broadly unchanged and we set our revised DCF-based mid-point value at SEK 80 (SEK 90).

We downgrade our order intake forecasts in Q4 and in the year ahead. We believe rising interest rates and uncertainties surrounding financing costs for Balco’s key customers (tenant-owned housing associations accounted for 72% of sales in 2021) are a key concern in the near term. In all, we leave our financial forecasts broadly unchanged and we set our revised DCF-based mid-point value at SEK 80 (SEK 90).
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