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Seafire: Ending the year with a seasonally small quarter - SEB

As in Q3, we expect demand for Seafire’s industrial exposure to have remained stable but demand for construction and consumer-oriented products to have remained soft. Q4 is a seasonally small earnings quarter; we forecast adj. EBITA of SEK 9m. Seafire currently trades at a 2024E EV/EBITA of 7x, which is 35% below its peer group. We reiterate our DCF-based equity value range of SEK 13-15 (mid-point of SEK 14).

As in Q3, we expect demand for Seafire’s industrial exposure to have remained stable but demand for construction and consumer-oriented products to have remained soft. Q4 is a seasonally small earnings quarter; we forecast adj. EBITA of SEK 9m. Seafire currently trades at a 2024E EV/EBITA of 7x, which is 35% below its peer group. We reiterate our DCF-based equity value range of SEK 13-15 (mid-point of SEK 14).
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