Evolution (Buy, TP: SEK1700.00) - Live buying opportunity

We reiterate our BUY and SEK1,700 target price after healthy but in-line Q1 results (Live revenue growth >25% YOY at constant FX). In our view, the weak share price despite a healthy start to the year, promising new games pipeline, high-conviction growth outlook (growth investments, e.g. recruitment), and long-awaited Live dealer contract with leading operator bet365 offers a solid buying opportunity.

Set for acceleration

Expansion investments weigh on Q1 margin, but great setup for solid outlook for remainder of '24e. Keep BUY — 17-14x '25e-'26e P/E and >5% FCF yield

Bet365 signing proving Evo's strength

Sweco (Buy, TP: SEK170.00) - Billing ratio set to improve

Going forward, we expect Sweco to more quickly reverse the negative billing ratio given the large-scale actions taken, and for profitability to see more support from cost-cutting, accelerated efficiency improvements and a leaner organisation. We reiterate our BUY and have increased our target price to SEK170 (137).

Equity raise, two more Q1 reports

This week, Nyfosa raised SEK1.7bn in equity, and Citycon and Olav Thon reported their Q1 results. Real estate stocks have performed well globally since the latest US CPI print. The weighted-average implied EBITDA yields on the stocks we cover are 4.32% for 2024e and 4.71% for 2025e.

Tokmanni (Buy, TP: EUR16.00) - Several hiccups

Following weaker-than-expected underlying Q1 performance, including sluggish key LFL KPIs and a higher fixed cost base, we have cut our 2024–2026e EPS by c6% on average. We reiterate our BUY but have reduced our target price to EUR16 (17).