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Footway: New financial targets reflect raised growth ambitions - SEB

Footway Group has announced new medium-term financial targets, including growth of "30-40%" per annum (raised from +15% previously), bolstered by adding new stores on its, highly automated, e-commerce platform. Profitability will largely be reinvested in driving this higher growth, which we interpret as supporting our current EBITA margin scenario of about 2%-4% in 2021-23 (previously: reach positive EBIT). We reiterate our midpoint DCF equity value of SEK 39 per share.

Footway Group has announced new medium-term financial targets, including growth of "30-40%" per annum (raised from +15% previously), bolstered by adding new stores on its, highly automated, e-commerce platform. Profitability will largely be reinvested in driving this higher growth, which we interpret as supporting our current EBITA margin scenario of about 2%-4% in 2021-23 (previously: reach positive EBIT). We reiterate our midpoint DCF equity value of SEK 39 per share.
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