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Dist IT: The brand builder - SEB

Reflecting DistIT Group’s new financial targets to reach 8% EBIT on sales of SEK 3.5bn in 2025, we upgrade our sales and earnings estimates over our forecast period ending 2023. Based on revised earnings, we arrive at a new midpoint DCF equity value of SEK 125 per share (changed from SEK 105). At this level the equity would be valued at 13x 2021 EV/EBIT – on par with peers. New market sales and increased share of own brands are key assumptions.

Reflecting DistIT Group’s new financial targets to reach 8% EBIT on sales of SEK 3.5bn in 2025, we upgrade our sales and earnings estimates over our forecast period ending 2023. Based on revised earnings, we arrive at a new midpoint DCF equity value of SEK 125 per share (changed from SEK 105). At this level the equity would be valued at 13x 2021 EV/EBIT – on par with peers. New market sales and increased share of own brands are key assumptions.
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