We downgrade our 2025-27 sales estimates by ~8%, owing to FX, while we downgrade 2025E-27E adjusted EBIT by 15-19%, mainly due to our expectation of margin pressure, particularly in North America. While we expect a more limited near-term impact, owing to healthy inventory levels, we expect that Ferronordic will have difficulty transferring the increased costs going forward, thus prompting us to downgrade 2025-27 gross margins by 40-60bp, whicih in turn drives negative adjusted EBIT revisions of 14-16% in the US. We reiterate our multiples-based fair value range of SEK 33-50 per share, corresponding to 8-12x 2026E adjusted EV/EBIT. The share is currently trading at the upper end of that range, i.e. ~11.5x, corresponding to a 16% premium versus the peer group, hence we see limited scope for a rerating in the near term. Marketing material commissioned by Ferronordic.
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