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Lime: Keeps on delivering - SEB

Lime maintains its strong momentum, delivering 19% y/y growth in Q4/22. Demand is said to be holding up well, although we expect the company to be agile if markets change. We remain cautious about organic growth (13% for 2023E versus 17% in 2022), which might prove to be too conservative, but expect margins to stabilise. Our new DCF-derived value range is SEK 270-306 (mid-point of SEK 288), which corresponds to a 2024E EV/EBITA of 21x.

Lime maintains its strong momentum, delivering 19% y/y growth in Q4/22. Demand is said to be holding up well, although we expect the company to be agile if markets change. We remain cautious about organic growth (13% for 2023E versus 17% in 2022), which might prove to be too conservative, but expect margins to stabilise. Our new DCF-derived value range is SEK 270-306 (mid-point of SEK 288), which corresponds to a 2024E EV/EBITA of 21x.
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