We expect solid earnings growth in Q4

Cash is still king

Single-digit valuation, double-digit growth

Huhtamaki (Buy, TP: EUR47.00) - Good risk/reward

Huhtamaki is one of our top picks going into 2025 due to our expectations of growing volume momentum and self-help efficiencies, fuelling 8% YOY clean EBIT expansion (c3% above post-Q3 consensus on c2% higher sales estimate) at an undemanding NTM EV/EBIT of c11.5x, c20% below its historical average and c10% below the sector average. For Q4e, we expect a continued drag from Foodservice EAO, but are c3% above consensus on clean EBIT, mostly due to North America. We reiterate our BUY and EUR47 target price.

Limited prospects for re-rating

While our coverage universe has seen a strong start to the year, we have made minor alterations to our oil and gas price assumptions, as sanction-related upside potential appears to be priced in the Brent oil and share prices. Thus, we struggle to find an appealing risk/reward among the large caps, especially gas-heavy names, prompting us to downgrade Vår Energi and BlueNord to HOLD (BUY). We favour Aker BP and Panoro Energy as our top picks, while Equinor remains a funding candidate.

Vimian (Buy, TP: SEK55.00) - Healthy growth to continue in Q4e

We expect continued healthy growth in Q4 despite further muted growth in high-cost elective orthopaedic procedures in the US. We have likely factored in higher operating expenses for marketing and education than consensus. This is also the first quarter with low-margin iM3 in the books. We reiterate our BUY and SEK55 target price.