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Formpipe: Strong ACV and better-than-expected EBIT - ABG

Sales 10% y-o-y, +2% vs. ABGSCe
Strong ACV sales continue; +309% vs. Q3’20
Expect cons. to raise ’21e-‘23e EBIT estimates

Sales SEK 106m (1.8% vs ABGSC 104m), EBITDA SEK 30m (18.9% vs ABGSC 25m), EBIT SEK 17m (73.3% vs ABGSC 10m), Adj. EBIT SEK 17m (73.3% vs ABGSC 10m). Sales grew 10% y-o-y, of which Private +18% y-o-y, Public Sweden -6% y-o-y, and Public Denmark +17% y-o-y.

On a preliminary basis, we expect consensus to raise its ’21-‘23 adj. EBIT estimates by 20-10% on the Q3 beat. Formpipe’s share is -2% over the past month and is trading at 22x EV/EBIT on our unrevised 2023 estimates.
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