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USWE: Synergy effects starting to emerge - VH Corp

* Demand remains strong despite continued D2C sales issues
* Synergy effects after the acquisition of Giant Loop starting to form
* We maintain our valuation interval of SEK 73.00 – 92.00 per share

USWE reported sales as expected, but lower profitability than our esti-mate
for Q2 of fiscal year 2022/2023. Cautious distributors continue to have a big
impact on bottom line. The company has during the quarter, applied the
precautionary principle, and made reservations for deliver-ies where payments
and collection of goods has been delayed. We forecast a somewhat lower sales
for the coming quarters, however, our long-term case remains intact. We
maintain our fair value estimate of SEK 73.00 – 92.00 per share.
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