Relais: Back on profit improvement track - Nordea

Relais reported Q1 2023 adjusted EBITA that was 23% ahead of Refinitiv consensus, with 7% higher sales. The vehicle repair and maintenance business was the main growth driver, while equipment and lighting also saw good sales. Earnings support from operational efficiency measures implemented in H2 2022 continue to support 2023 development, although the effect will gradually decrease in H2. The outlook for repair and maintenance remains good, with customers seeking more affordable service providers. Relais has a solid M&A target list, and given a normalising market environment, we expect the M&A pace to pick up later in 2023. We derive a DCF- and multiples-based fair value range of EUR 16.2-19.8 (EUR 16.1-19.7) per share. Marketing material commissioned by Relais Group Oyj.

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