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Siili: Shifting from growth to efficiency - SEB

The expected slowdown hit Siili’s Q2 more severely than we had projected. Despite the hefty miss in Q2 EBITA, our 2024-25 EBITA estimates are down only 4-3%. We find the costs adaptable to the slower market momentum and remain confident that the digital development market will pick up again. Hence, with low risks in the case we justify a higher valuation. Our fair value range comes down a notch to EUR 16-19 (from EUR 17-19).

The expected slowdown hit Siili’s Q2 more severely than we had projected. Despite the hefty miss in Q2 EBITA, our 2024-25 EBITA estimates are down only 4-3%. We find the costs adaptable to the slower market momentum and remain confident that the digital development market will pick up again. Hence, with low risks in the case we justify a higher valuation. Our fair value range comes down a notch to EUR 16-19 (from EUR 17-19).
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