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Suominen: Slow profit improvement pace continued in Q1 - Nordea

Suominen's Q1 2024 adjusted EBITDA fell short of Vara Research consensus. The company has seen improving volumes and noted positive signs of demand in the market. We expect a gradual margin recovery, while high pulp prices create uncertainty. We trim our estimates due to expected higher raw material costs and derive a slightly lower DCF- and multiples-based fair value range of EUR 1.8-2.5 (2.0-2.7). Marketing material commissioned by Suominen Oyj.

Suominen's Q1 2024 adjusted EBITDA fell short of Vara Research consensus. The company has seen improving volumes and noted positive signs of demand in the market. We expect a gradual margin recovery, while high pulp prices create uncertainty. We trim our estimates due to expected higher raw material costs and derive a slightly lower DCF- and multiples-based fair value range of EUR 1.8-2.5 (2.0-2.7). Marketing material commissioned by Suominen Oyj.
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