Valuation and view on the shares. Digia's outlook appears better than we thought at the time of Q2 report in early August. In our view, Digia's attraction among peers is stability and predictability, thanks to high share of stable maintenance/monitoring contracts (>60% of revenues). The company has been able to show healthy organic growth, which we expect to continue, backed by positive demand trends for services offered by Digia. Bolt-on M&A is likely given net debt / EBITDA of <1x (2020E), which could speed up growth beyond our estimates. The share has performed well (+67% YTD), but this has been driven by good earnings performance. Digia now trades close to peers' median on our 2021E estimates.
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