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Dist IT: Convincing on margin expansion - SEB

Reflecting Q3 results bettering our expectations, we upgrade our earnings forecasts in DistIT, a leading distributor of IT/Technology and SDA products and consumer goods. We raise our mid-point DCF-based equity value from SEK 54 to SEK 57 per share. Building from increasing private label (PL) sales, driving gross margins, and from cost savings, Q3 results largely corroborate our company case. New product segments should add to growth ahead.

Reflecting Q3 results bettering our expectations, we upgrade our earnings forecasts in DistIT, a leading distributor of IT/Technology and SDA products and consumer goods. We raise our mid-point DCF-based equity value from SEK 54 to SEK 57 per share. Building from increasing private label (PL) sales, driving gross margins, and from cost savings, Q3 results largely corroborate our company case. New product segments should add to growth ahead.
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