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Scanfil: Very resilient business model - Nordea

Scanfil reported healthy figures, with sales and adjusted EBIT beating our estimates. The company also maintained its 2020 guidance, which was issued after the most recent divestment in June.

It is hard to find clear weaknesses in Scanfil's Q2 report or the underlying operations in H2 2020, hence we lift 2020E clean EBIT by 13%. The business model has proven to be very resilient to COVID-19 effects and its revenue growth prospects have not vanished despite the weak macroeconomic environment.

Due to good operational performance, the share price has risen by 40% in past 12 months, wiping out the previous valuation discount to peers. Our fair value range for Scanfil is now EUR 5.1-6.2 (4.5-5.5).
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