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SyntheticMR: Positive advancements for the long-term - SEB

While the Q3 sales growth of 14% was lower than we expected, SyntheticMR’s sales are up 24% so far in 2023, supporting the positive trajectory. The stabilising opex trend continued in Q3 contributing to EBIT margin of 21%. The company said that it is on track to meet its financial goals for 2023, which would imply strong growth in Q4. We lower 2024E-25E earnings by 5% and keep our fair value range of SEK 23-28 per share.

While the Q3 sales growth of 14% was lower than we expected, SyntheticMR’s sales are up 24% so far in 2023, supporting the positive trajectory. The stabilising opex trend continued in Q3 contributing to EBIT margin of 21%. The company said that it is on track to meet its financial goals for 2023, which would imply strong growth in Q4. We lower 2024E-25E earnings by 5% and keep our fair value range of SEK 23-28 per share.
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