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Balco Q2E: new order declines look well rehearsed - SEB

Ahead of the Q2 results, due on 14 July, we have made minor earnings revisions reflecting mainly FX and slightly changed margin assumptions and we reiterate our mid-point equity value of SEK 75. We expect Q2 to largely mirror Q1 this year in terms of continued pressure in order intake (Q2E: -29% y/y), while cost savings should bolster EBIT (Q2E: 8.2% of sales, up 34 bp y/y). The equity remains trading at historically low valuation multiples.

Ahead of the Q2 results, due on 14 July, we have made minor earnings revisions reflecting mainly FX and slightly changed margin assumptions and we reiterate our mid-point equity value of SEK 75. We expect Q2 to largely mirror Q1 this year in terms of continued pressure in order intake (Q2E: -29% y/y), while cost savings should bolster EBIT (Q2E: 8.2% of sales, up 34 bp y/y). The equity remains trading at historically low valuation multiples.
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