Boreo: Demand situation remains stable - Nordea
Boreo reported Q1 adjusted EBIT excluding PPA of EUR 2.1m, slightly ahead of our expectation and Refinitiv consensus. The outlook has remained stable and the company does not expect any material weakening in demand. The SANY exit in Finland and Sweden should support Q2 cash flow by some EUR 2m, which bodes well for the M&A pipeline and higher return on capital. We make only minor underlying estimate revisions and expect more bolt-on acquisitions later this year. Based on underlying operations and M&A value-creation opportunities, we derive a slightly higher fair value range of EUR 44-53 (43-51) per Boreo share. Marketing material commissioned by Boreo.
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