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Green Landscaping: Taking another leap towards an 8% margin - SEB

Following the Q3 report, we increase our long-term margin assumptions and derive a new fair value range of SEK 81-106. In our view, the main positive in Q3 was the Stockholm region, in which improvement measures are finally coming through, suggesting to us that the 8% group margin target could be achievable in the not-too-distant future. Combined with a still active M&A agenda, we see scope for healthy medium-term earnings growth.

Following the Q3 report, we increase our long-term margin assumptions and derive a new fair value range of SEK 81-106. In our view, the main positive in Q3 was the Stockholm region, in which improvement measures are finally coming through, suggesting to us that the 8% group margin target could be achievable in the not-too-distant future. Combined with a still active M&A agenda, we see scope for healthy medium-term earnings growth.
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