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DistIT: Headwinds united - SEB

We argue DistIT Group’s Q3 sales and results will likely be burdened by the impact from prevailing consumer uncertainty, as well as a weaker SEK (DistIT imports in EUR and USD mainly) and a limited ability to pass on imported inflation to its retailer customers. Adding negative operating leverage, we lower our underlying 2022-24 EBIT forecasts by 11-21% p.a. We set our revised DCF-based mid-point equity value at SEK 100 per share.

We argue DistIT Group’s Q3 sales and results will likely be burdened by the impact from prevailing consumer uncertainty, as well as a weaker SEK (DistIT imports in EUR and USD mainly) and a limited ability to pass on imported inflation to its retailer customers. Adding negative operating leverage, we lower our underlying 2022-24 EBIT forecasts by 11-21% p.a. We set our revised DCF-based mid-point equity value at SEK 100 per share.
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