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Suominen: Renewed focus on wiping and sustainability - Nordea

We resume commissioned research coverage of Suominen and assign the company a fair value range of EUR 5.1-6.4 per share. Marketing material commissioned by Suominen Oyj.

We estimate a fair value range of EUR 5.1-6.4 per share, based on our four valuation approaches (DCF, 2021E P/BV, 2022E EV/EBIT, and 2022E P/E). When comparing Suominen to a broad peer group, we note that P/E multiples tend to be higher for sector peers with similar return and growth prospects. While we find the underlying demand growth outlook stable, we believe the main risks to earnings are related to raw material input cost volatility and the potential implications for the supply/demand balance if suppliers invest excessively in new capacity after the recent demand peak.
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