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SyntheticMR: Starts to reap the benefits of strategic efforts - SEB

The Q3 report showed continued sales momentum, which indicates to us that SyntheticMR is reaping the benefits of its recent sales force initiatives and stronger relationships with the three big OEMs. Our long-term estimates are largely unchanged and we continue to expect average organic growth in 2022-24 of 28% with the EBIT margin expanding to >40% by 2024E. Our new DCF-based fair value range is SEK 33-43 (previously SEK 33-42).

The Q3 report showed continued sales momentum, which indicates to us that SyntheticMR is reaping the benefits of its recent sales force initiatives and stronger relationships with the three big OEMs. Our long-term estimates are largely unchanged and we continue to expect average organic growth in 2022-24 of 28% with the EBIT margin expanding to >40% by 2024E. Our new DCF-based fair value range is SEK 33-43 (previously SEK 33-42).
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