Relais: We are slightly ahead of consensus for Q3 - Nordea

We maintain our estimates intact ahead of Relais Q3 report. Following the acquisition of Matro, we believe the company will record inventory fair value adjustments, impacting its cost base temporarily. We do not know if the company will book these items as items affecting comparability, while believe investors' should treat them as such. Operationally, we expect 1% y/y organic sales growth (+36% on reported basis) and EUR 11.9m adjusted EBITA in Q3. Compared to LSEG Data & Analytics consensus, we are 1% ahead on sales and 4% ahead on adjusted EBITA for Q3E. While market growth has likely remained muted ahead of the important lighting season, we note Relais' increased exposure to B2B sales which could have kept its growth above the market growth. The current CEO will retire in March 2026 and we note the company is currently reviewing its strategy. We do not expect any material changes while believe the company could target at least EUR 70m adjusted EBITA by 2028. Our DCF- and multiples-based fair value range for Relais is EUR 19.2-23.4 per share.