* Operational leverage supports beat on adj. EBITDA * Adj. EBITDA revised by +1-0% for '25e-'27e * Unchanged outlook and fair value range of SEK 220-300 Continues to show strength Q3 proved marginally weaker than expected on sales, but operational leverage continued to improve, resulting in a 5%/3% beat on adj. EBITDA vs. ABGSCe/Infront consensus. Sales were EUR 592m (-2% vs. ABGSCe, -2% vs. cons.) with organic sales growth of +12% (ABGSCe +15%). Within HS, growth remained solid, supported by the sport/wellness and ambulatory clinics driving FFS growth in Poland. In India, the company is reducing its exposure to public funding, which weighs on growth near term but is expected to be beneficial longer term. In DS, efficiency programmes, volume growth, and price increases continued to support margin expansion, and management highlighted that the segment has navigated the German reimbursement reform well. Both segments contributed to an overall profitability improvement, with the group adj. EBITDA margin at 17.2% (ABGSCe 16.2%, cons. 16.4%). Estimate changes Overall, we leave our operational assumptions largely intact, revising adj. EBITDA by +1-0% for '25e-'27e. Management highlighted three near-term factors that will temporarily affect margins: 1) the launch of two new hospitals in India, brought forward into Q4 to capture strong momentum, 2) some early indications of a more cautious consumer, and 3) a strike in one Indian state during Q4. Despite these short-term effects, we see no changes to the company’s fundamental outlook, and the long-term growth and margin expansion trajectory remains intact. Fair value range unchanged at SEK 220-300 With an unchanged long-term outlook and minor estimate revisions, we leave our fair value range at SEK 220-300. The range is derived from trading multiples of two peer groups, one of healthcare providers in developing markets and one in developed markets, alongside a DCF. It corresponds to a '25e EV/EBITDA of 12x-15x.
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