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Duni: Waiting game - SEB

We expect higher freight and raw material prices and a weak German consumer to put short-term pressure on the P&L. More positively, interest rates are coming down, which should boost consumer sentiment. In addition, we expect Duni to be able to pass on the higher input costs to its customer, which over time should support margin expansion. We lower our DCF-based fair equity value range to SEK 148-190, with a mid-point of SEK 168 (170).

We expect higher freight and raw material prices and a weak German consumer to put short-term pressure on the P&L. More positively, interest rates are coming down, which should boost consumer sentiment. In addition, we expect Duni to be able to pass on the higher input costs to its customer, which over time should support margin expansion. We lower our DCF-based fair equity value range to SEK 148-190, with a mid-point of SEK 168 (170).
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