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Lime: You get what you expect - SEB

Ahead of Q1 numbers, we leave estimates unchanged for Lime and thus also our fair value range of SEK 296-319 with mid-point at SEK 307. We expect Lime to deliver another solid quarter with 15% group organic growth but with contracting margins as the full effect of the August-trainee cohort will be visible together with parts of the January-cohort. All in all, we expect no drama in Q1.

We value Lime using a DCF (WACC 6.5%) which yields a fair value range of SEK 296-319 with a mid-point value of SEK 307. Lime currently trades at 30x 2022 EBITDA and 25x 2023 EBITDA.
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