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Christian Berner: Expect a solid Q3 - ABG

Q3e sales SEK 221m, up 11%, adj. EBITA margin 7.2% (8.7%)
Growth to slow as book-to-bill normalises, profitability outlook good
Fair value SEK 30-40, trading at 12-11x P/E vs. peers at 23-11x


Q3e: Continued growth but comps getting tougher

For Q3 we expect sales of SEK 221m, up 11% y-o-y (10% org, 1% FX), as the company continues to deliver on its order book. We estimate adj. EBITA of SEK 16m (17m), for a margin of 7.2% (8.7%). The reasons for the lower profitability estimate are tough comps and management's comments regarding reduced seasonality going forward. We expect this to convert into EPS of SEK 0.56 (0.64), and the company to produce lease adj. FCF of SEK 12m (10m).
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