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DistIT Group: An option-like valuation - SEB

Q1 proved a challenging start to 2023, with group EBIT burdened by inventory write-downs in Aurdel. We believe the high net debt levels are likely to weigh on the equity valuation in the near term. We leave our underlying EPS forecasts broadly unchanged in 2024-25 and we also maintain our DCF based mid-point of SEK 17 per share. At these levels the equity would be valued at a prospective EV/EBIT of 10x our 2024 estimates.

Q1 proved a challenging start to 2023, with group EBIT burdened by inventory write-downs in Aurdel. We believe the high net debt levels are likely to weigh on the equity valuation in the near term. We leave our underlying EPS forecasts broadly unchanged in 2024-25 and we also maintain our DCF based mid-point of SEK 17 per share. At these levels the equity would be valued at a prospective EV/EBIT of 10x our 2024 estimates.
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