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Footway: Sequential improvements ahead - SEB

Based on lowered forecasts, factoring in sustained supply-chain disruptions and increasingly muted consumer demand in H2 2022, we argue Footway Group now trades at an EV/sales of 0.6x our 2023 estimates (using a TERP of SEK 5.09). While we forecast continuing negative y/y performances in sales in H2, we also highlight our expectations for a sequential improvement from here. Our new mid-point DCF value is SEK 10 (12).

Based on lowered forecasts, factoring in sustained supply-chain disruptions and increasingly muted consumer demand in H2 2022, we argue Footway Group now trades at an EV/sales of 0.6x our 2023 estimates (using a TERP of SEK 5.09). While we forecast continuing negative y/y performances in sales in H2, we also highlight our expectations for a sequential improvement from here. Our new mid-point DCF value is SEK 10 (12).
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