Relais: Back to a more solid state - Nordea

Relais' Q3 results were in line with our expectation and above the low-quality Refinitiv consensus. The company has been able to tackle inflation through price increases, while the repair and maintenance business returned to a more stable trajectory, helped by successful recruitments of mechanics. The Q4 outlook is still uncertain, as low consumer confidence could affect B2C sales, especially in Finland, while other operations should continue to be stable, we believe. The lighting season has started a bit later than normal, with resellers reluctant to take in pre-orders. However, the company appeared fairly confident on the Q4 outlook. The company expects multiples for potential M&A targets to decline and this could offer good entry points for the company in 2023, we believe. We derive a fair value range of EUR 15.7-19.2 (15.9-19.5) per Relais share. Marketing material commissioned by Relais Group Oyj.

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