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Dist IT: Savings to bolster earnings trajectory ahead - SEB

Implementing annualised savings totalling SEK 22m (personnel, warehouse rentals), as announced, from the ongoing integration in its AuroraDeltaco business area, we raise our adjusted EPS forecasts in DistIT Group by 6-14% over our forecast period to 2024. Reflecting peer multiple compression, we maintain our mid-point DCF-based equity value of SEK 145 per share. At this level, the equity would trade at 14x our revised 2023 EV/EBIT estimates.

Implementing annualised savings totalling SEK 22m (personnel, warehouse rentals), as announced, from the ongoing integration in its AuroraDeltaco business area, we raise our adjusted EPS forecasts in DistIT Group by 6-14% over our forecast period to 2024. Reflecting peer multiple compression, we maintain our mid-point DCF-based equity value of SEK 145 per share. At this level, the equity would trade at 14x our revised 2023 EV/EBIT estimates.
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