Turnaround takes time

Europris (Hold, TP: NOK75.00) - Slightly soft Q3

We consider this a slightly weak report, including figures below expectations, a hiked store guidance and no significant change in outlook. We expect consensus 2024e EBITDA to come down 1% and believe a neutral to slightly negative share price reaction is warranted.

AAK (Buy, TP: SEK360.00) - 2030 targets in focus

We are positive ahead of the CMD, scheduled to begin at 09:00 CET on 26 November, expecting AAK to raise its 2030 EBIT/kg target to >SEK3/kg and reiterate its ambition to outgrow the market in volumes and >10% EBIT growth p.a. We find consensus 2025–2026e EBIT low, at c3–5%, and believe clarity on structural margin improvements would be positive. We also expect focus on capital allocation, with AAK set to be net cash positive in early 2025e. We reiterate our BUY and SEK360 target price.

Elekta (Hold, TP: SEK69.00) - Still in ‘wait and see’ mode

During its Q1 call, Elekta indicated that H1 would be weaker than H2, and we believe this is reflected by consensus. For Q2, we forecast sales growth of c-5% YOY and organic growth of c-1% YOY. We expect order intake of cSEK4.9bn, broadly in line with consensus, and that the book-to-bill in Q2 should remain well above 1x. We are still cautious regarding Elekta’s longer-term performance, and reiterate our HOLD, while we have lowered our target price to SEK69 (76).

Valuation update

In this note, we show updated valuation statistics for the E&P sector