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Cdon: Likely weak GMV, sustained investments - SEB

Ahead of CDON’s Q2 2021 results, we downgrade our GMV forecasts, reflecting muted site traffic data developments in the period. CDON has communicated issues, primarily with the automation engine on its new e-commerce platform as well as with the automated indexation at search engines: both combining to lower traffic and conversion rates at its marketplace business. Our revised midpoint DCF value is SEK 750 (SEK 800).

Ahead of CDON’s Q2 2021 results, we downgrade our GMV forecasts, reflecting muted site traffic data developments in the period. CDON has communicated issues, primarily with the automation engine on its new e-commerce platform as well as with the automated indexation at search engines: both combining to lower traffic and conversion rates at its marketplace business. Our revised midpoint DCF value is SEK 750 (SEK 800).
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