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Footway Group Q3E: Facing the impact from ongoing corporate restructuring - SEB

We think the ongoing corporate restructuring process will impact deliveries (stock-in-trade), sales and results in Q3 (report due 12 October at 08.00 CET). We cut our financial forecasts accordingly (and admit that forecast uncertainty remains high), effectively moving our base case P&L scenario one year out. Based on a new number of shares, a steady-state EBIT margin of c. 1.5% and a WACC of 6.3%, we set our revised mid-point value at SEK 3 (range: 2.60-3.50).

We think the ongoing corporate restructuring process will impact deliveries (stock-in-trade), sales and results in Q3 (report due 12 October at 08.00 CET). We cut our financial forecasts accordingly (and admit that forecast uncertainty remains high), effectively moving our base case P&L scenario one year out. Based on a new number of shares, a steady-state EBIT margin of c. 1.5% and a WACC of 6.3%, we set our revised mid-point value at SEK 3 (range: 2.60-3.50).
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