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Tempest Security: Growth in the double-digits, margins on the rise - SEB

The Q1 report was in line with our expectations, supported by a strong start to the year within Security Services. Risk Solutions had a slower quarter, but the segment remains, in our view, the main swing factor for higher margins ahead. Following the report, we have raised our 2024E-26E EBITDA by 0-2%, driven by higher expectations for Security Services. We reiterate our mid-point DCF value of SEK 27 per share.

The Q1 report was in line with our expectations, supported by a strong start to the year within Security Services. Risk Solutions had a slower quarter, but the segment remains, in our view, the main swing factor for higher margins ahead. Following the report, we have raised our 2024E-26E EBITDA by 0-2%, driven by higher expectations for Security Services. We reiterate our mid-point DCF value of SEK 27 per share.
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