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Seafire: Stable quarter with lowered balance sheet risk - SEB

Seafire delivered a stable quarter, beating our adj. EBITA estimate by 39% on higher profitability. By the granting of the deferment tax payments of SEK 94m, it reduced its pro forma net debt/EBITDA to 2.1x, thus reducing the stress on the balance sheet notably. We leave our estimates broadly intact, which imply a 2024E EV/EBITA of 6.5x for Seafire. We reiterate our mid-point DCF-based equity value of SEK 14 per share.

Seafire delivered a stable quarter, beating our adj. EBITA estimate by 39% on higher profitability. By the granting of the deferment tax payments of SEK 94m, it reduced its pro forma net debt/EBITDA to 2.1x, thus reducing the stress on the balance sheet notably. We leave our estimates broadly intact, which imply a 2024E EV/EBITA of 6.5x for Seafire. We reiterate our mid-point DCF-based equity value of SEK 14 per share.
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