The margin recovery in Duni is going well, with operating margins expanding 361bp y/y to 11.6% in Q3. The short-term volume outlook is uncertain, but we still like the long-term growth case, strong cash generation and appealing valuation (10x P/E 2024E). Following the strong report, we raise our 2023E EBIT by 10%, 2024E EBIT by 3% and our DCF-based mid-point value to SEK 170 (160).
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