Ferronordic: Awaiting a recovery amid a lacklustre backdrop - Nordea

We lower 2024E sales by ~4% and adjusted EBIT by 12%, driven by Germany, while we keep our estimates for the US mostly unchanged. While we do see some green shoots in a mostly lacklustre market, we anticipate a recovery for Ferronordic will take some time; we expect negative organic growth throughout the remainder of 2024, prior to a more pronounced high-single-digit group organic growth recovery for 2025E. On the positive side, the relative valuation of Ferronordic is rather undemanding, at ~10x 2025E adjusted EV/EBIT, compared to the peer group average of ~14x. We maintain our multiples-based valuation range of 7-11x 2025E adjusted EV/EBIT, with a lowered fair value range of SEK 41-64 (47-74). Marketing material commissioned by Ferronordic.

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