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Dignitana: Sales coming in flat - Redeye

Redeyes’ long-term view of Dignitana is intact despite the flat sales progression. The costs surprised negatively; the gross margin was, on the other hand, substantial. The sales that did not reach our expectations and slightly higher costs made for the deviation vs our expectations. We have adjusted for the deviation in Q1 and trimmed our assumptions slightly for H2. The growth in the coming years is still expected to be strong, although 2024e needs to pick up. With the downward adjustments, our new Base case value is SEK 8.2 (8.6) per share, with a fair value range of SEK 2.7 to 18 per share.

Redeyes’ long-term view of Dignitana is intact despite the flat sales progression. The costs surprised negatively; the gross margin was, on the other hand, substantial. The sales that did not reach our expectations and slightly higher costs made for the deviation vs our expectations. We have adjusted for the deviation in Q1 and trimmed our assumptions slightly for H2. The growth in the coming years is still expected to be strong, although 2024e needs to pick up. With the downward adjustments, our new Base case value is SEK 8.2 (8.6) per share, with a fair value range of SEK 2.7 to 18 per share.
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