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Balco: Preparing for post-covid recovery - SEB

We expect near-term operations to still be hampered by meeting restrictions, but forecast a gradual uptick in orders in conjunction with partial re-openings, leading us to expect strong deliveries in 2022-23. Our underlying estimates for 2021 are slightly lowered, while recent M&A explains the majority of the positive revisions. Given this, we up our fair valuation mid-point to SEK 110 (98), and note a clear discount to peers, despite a promising growth outlook.

We expect near-term operations to still be hampered by meeting restrictions, but forecast a gradual uptick in orders in conjunction with partial re-openings, leading us to expect strong deliveries in 2022-23. Our underlying estimates for 2021 are slightly lowered, while recent M&A explains the majority of the positive revisions. Given this, we up our fair valuation mid-point to SEK 110 (98), and note a clear discount to peers, despite a promising growth outlook.
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