22% growth in Consumer

Airthings (Buy, TP: NOK4.00) - Impressive performance in light of macroeconomic backdrop

Relief is the best way to describe Airthings’ Q2 report, in our view, with YOY top-line growth, a gross margin gain, and a smaller OPFCF loss, despite the challenging macroeconomic backdrop. Furthermore, the Q3 guidance was above our expectations, and execution on cost optimisation YTD has given us greater confidence in its ability to accelerate EBITDA breakeven to H2 2023. We reiterate our BUY and NOK4 target price.

Airthings (Buy, TP: NOK4.00) - Near-term headwinds, but our underlying conviction remains

While we remain firmly confident in the underlying market trends and Airthings’ positioning, we see no choice but to lower our expectations on continued bearish reads on consumer spending. We have therefore cut our top-line estimates by 30–35%, and in turn our target price to NOK4 (8), which equals the invested capital, while our DCF still suggests ample upside potential. We reiterate our BUY.

Metsa Board (Buy, TP: EUR11.00) - Scope for a revaluation

With ample evidence of improved demand for paper board and a better price outlook for market pulp, we believe earnings headwind has now turned into a tailwind. We also expect earnings to be driven by incremental volumes after capacity expansions at existing mills. After ambitious investments over the past three years, the company’s paper board capacity is up c25%, while its net long pulp position has increased by close to 30%. We have upgraded to BUY (HOLD) and raised our target price to EUR11 (7.7) on our increased estimates including higher dividends.

BioArctic (Buy, TP: SEK350.00) - Limited news on EU approval

The Q1 report was in line with expectations, with a small beat on the operating loss. The cash position at end-Q1 was nearly SEK1bn. There was limited news on the delayed EU approval (waiting on a SAG meeting). Eisai recently guided for Leqembi sales of JPY56.5bn (year to March 2025), implying royalties to BioArctic of cSEK360m. We reiterate our BUY and SEK350 target price.

Surgical Science (Buy, TP: SEK230.00) - Weaker than expected start to 2024

The weak Q1 results, with sales and adj. EBIT below our estimates, were largely due to a significant slowdown in Educational products. We have marginally revised our 2024–2026e on the strong management outlook for 2024, and reiterate our BUY and SEK230 target price. We believe the weak share price reaction on the report presents an opportunity for long-term investors.