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Dist IT: Q1E: consensus estimates now lowered, we expect strong earnings growth - SEB

DistIT Group will report Q1 results on 29 April at 08.00 CET. Mainly, we expect increased own brand sales (+13%y/y) and lower A-brand contributions (-3% y/y) to continue to bolster gross margins (+1pp y/y). Adding cost management, we forecast y/y EBIT growth of 39% to SEK 13m (consensus lowered to SEK 11m). We argue the equity is still valued at 7x our 2022 EV/EBIT estimates (after a 186% share performance in the past year). We reiterate our midpoint DCF value of SEK 125.

DistIT Group will report Q1 results on 29 April at 08.00 CET. Mainly, we expect increased own brand sales (+13%y/y) and lower A-brand contributions (-3% y/y) to continue to bolster gross margins (+1pp y/y). Adding cost management, we forecast y/y EBIT growth of 39% to SEK 13m (consensus lowered to SEK 11m). We argue the equity is still valued at 7x our 2022 EV/EBIT estimates (after a 186% share performance in the past year). We reiterate our midpoint DCF value of SEK 125.
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