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Tempest Security: Sweden falling behind - SEB

We forecast sales of SEK 123m, up 10% y/y, driven by stable performance from the Security Solutions segment and a seasonally strong quarter from Risk Solutions. We believe price indexation in Security Solutions combined with slightly higher sales will result in 1pp better margin y/y. We expect total adj. EBITDA of SEK 7.4m (-3% y/y), with margins in Risk Solutions pressured by increased competition. We lower our DCF-based mid-point to SEK 24 (34).

We forecast sales of SEK 123m, up 10% y/y, driven by stable performance from the Security Solutions segment and a seasonally strong quarter from Risk Solutions. We believe price indexation in Security Solutions combined with slightly higher sales will result in 1pp better margin y/y. We expect total adj. EBITDA of SEK 7.4m (-3% y/y), with margins in Risk Solutions pressured by increased competition. We lower our DCF-based mid-point to SEK 24 (34).
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