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SyntheticMR: Solid quarter ahead but a tough comp - SEB

We see -10% organic growth in Q2, mainly an effect of quarterly volatility (H1 organic growth at +10%) with positive EBIT. In our view, SyntheticMR is on track to deliver on its 2023 guidance, implying >20% growth for the year, and we also see signs that margins will start to scale. We raise our sales estimates by 2% on FX and our new DCF-based fair value range is SEK 28-36 (27-35).

We see -10% organic growth in Q2, mainly an effect of quarterly volatility (H1 organic growth at +10%) with positive EBIT. In our view, SyntheticMR is on track to deliver on its 2023 guidance, implying >20% growth for the year, and we also see signs that margins will start to scale. We raise our sales estimates by 2% on FX and our new DCF-based fair value range is SEK 28-36 (27-35).
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