We see Pihlajalinna as a margin turnaround case in the near term, with good growth potential longer term in the consolidated and structurally growing Finnish healthcare services market. Demand drivers are positive in private healthcare and the public market is showing signs of acceleration. We estimate an EPS CAGR of 41% in 2020-23E and see good risk-reward at a 26-30% discount to Terveystalo on 2021-22E EV/EBITDA.
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