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Elanders: Automotive recovery driving earnings upgrades - Nordea

Elanders will present its Q3 numbers on 22 October. We expect some COVID-19-related headwinds in Q3, especially for the Automotive business and due to fading protection equipment volumes. However, we still think the underlying markets are turning in the right direction and that this, together with the cost reduction programme implemented during early 2020 within LGI, will fuel strong operational leverage and earnings growth when volumes return in 2021. In addition, with continued strong cash flows, we expect leverage to be at comfortable levels by year-end 2020. We raise our multiples-based SOTP valuation range to SEK 81-103 (77-98) per share

Elanders will present its Q3 numbers on 22 October. We expect some COVID-19-related headwinds in Q3, especially for the Automotive business and due to fading protection equipment volumes. However, we still think the underlying markets are turning in the right direction and that this, together with the cost reduction programme implemented during early 2020 within LGI, will fuel strong operational leverage and earnings growth when volumes return in 2021. In addition, with continued strong cash flows, we expect leverage to be at comfortable levels by year-end 2020. We raise our multiples-based SOTP valuation range to SEK 81-103 (77-98) per share
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