Dignitana Q4’22: Underlying positive momentum
Redeyes’ view on Dignitana is generally unchanged. We see that the sales momentum continued in the quarter, which could have been even higher without the component issues that hampered sales a bit. A write-down negatively affected the gross margin; however, the underlying gross margin was in the normal range. The US market is transforming, and we believe there is more to come which supports the long-term growth case in Dignitana. The development over quarters can vary, but the trend is positive. We lower our very high expectation on growth for 2023e to high. With the estimate adjustments, we adjust our fair value range to SEK 5 (7) to SEK 22 (24) per share and a Base case value of SEK 12 (15) per share.
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