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Projektengagemang: A margin story to start with - SEB

PE, the architectural consultancy group, reported Q1 earnings well ahead of all market estimates, as its cost savings programme bolstered its P&L lines. While we lower our sales forecasts, the reductions are more than offset by raised margin assumptions and we raise EBIT by an average of 7% for 2024E-26E. We raise our mid-point equity value to SEK 17 (15) per share. At current levels, PE is being valued at steep discounts to peers.

PE, the architectural consultancy group, reported Q1 earnings well ahead of all market estimates, as its cost savings programme bolstered its P&L lines. While we lower our sales forecasts, the reductions are more than offset by raised margin assumptions and we raise EBIT by an average of 7% for 2024E-26E. We raise our mid-point equity value to SEK 17 (15) per share. At current levels, PE is being valued at steep discounts to peers.
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