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Inission: Increased headwinds - Nordea

Inission will present its Q1 report on 6 May. We expect a soft quarter with sales down 1% y/y, mainly driven by a -13% organic headwind. We argue that management will address profitability issues in the group and continue to focus on capturing a larger share of the value chain (ie assisting in all stages from design to service). We cut our earnings forecasts which reduces our DCF-derived fair value range to SEK 98-121 (109-129). Marketing material commissioned by Inission.

We reduce our organic sales estimates for 2021 and also assume a smaller impact from cost saving in the year. The overall impact on our 2021-23 sales estimates is -1% to -5% and the impact on our adjusted EBIT estimates is -9% to -34%. Due to these revisions, we update our DCF-based fair value range to SEK 98-121 (109-129).
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