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Projektengagemang: Preparing for organic growth - SEB

We expect restructurings and cost base reductions to put PE in a good position to get back to profitable growth in a post-Covid market recovery. Near-term, the market remains uncertain with increased price competition in certain parts of the operations, but we argue for a relatively good risk-reward in PE’s shares with a currently undemanding valuation compared to peers. Despite minor estimate cuts, we raise our FV mid-point to SEK 33 (31).

Despite minor negative estimate revisions for 2021, we raise our FV mid-point to SEK 33 (31), implying 2022E EV/EBITA of 10.5x. The market remains challenging in the near term with the recovery from Covid uncertain, but we believe PE is well positioned for profitable growth in our forecast period with a trimmed cost structure and streamlined organisation. Shares are trading at undemanding multiples (2022E PER 9.8x) if the growth pickup in late 2021-22 materializes.
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