Suominen: Gradual profitability improvement to continue - Nordea

We expect Suominen to deliver another quarter of improving profitability, driven by increased volumes and sales prices y/y. Declining raw material prices will likely alleviate some margin pressure going forward, as we expect sales prices to lag pulp prices. Overcapacity, especially in the European market, could partly counteract the otherwise improving operating environment. We trim 2024E-26E sales by 1% and cut 2024E adjusted EBITDA by 6%. We raise 2025E-26E EBITDA by 3-4%. Our fair value range increases slightly to EUR 1.8-2.5 (1.7-2.4), based on a combination of DCF- and multiples-based valuation approaches. - Marketing material commissioned by Suominen Oyj.

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