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Nexam Chemical: Short-term pain, long-term gain - DNB

We have lowered our 2022e sales by 9% following a weaker short-term outlook for wind power. We find the company’s implicit 2022 sales target of SEK275m–325m challenging, but still consider it well positioned to reach its targeted 25% sales growth annually, with stable profitability over a cycle. Following the Q1 results and a change of analyst, we keep our fair value of SEK14–19.

We have lowered our 2022e sales by 9% following a weaker short-term outlook for wind power. We find the company’s implicit 2022 sales target of SEK275m–325m challenging, but still consider it well positioned to reach its targeted 25% sales growth annually, with stable profitability over a cycle. Following the Q1 results and a change of analyst, we keep our fair value of SEK14–19.
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