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DistIT Q3E: prevailing challenging markets, mitigated by cost programmes - SEB

DistIT Group, a leading distributor of IT/Tech consumer goods and small domestic appliances (SDA), will report Q3 results on 24 November at 08.00 CET. We reduce our sales assumptions, anticipating prevailing challenging end-consumer markets in H2, as well as from E-fuel (sales bans impact), while cost savings programmes should mitigate the effect on EBIT. Based on WACC of 7.4% and steady-state EBIT of 3.7%, we set at our new DCF-based mid-point value at SEK 15 (SEK 16).

DistIT Group, a leading distributor of IT/Tech consumer goods and small domestic appliances (SDA), will report Q3 results on 24 November at 08.00 CET. We reduce our sales assumptions, anticipating prevailing challenging end-consumer markets in H2, as well as from E-fuel (sales bans impact), while cost savings programmes should mitigate the effect on EBIT. Based on WACC of 7.4% and steady-state EBIT of 3.7%, we set at our new DCF-based mid-point value at SEK 15 (SEK 16).
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