Disappointing growth communication leaves few alternatives left

New targets hint potential share buybacks

Ahead of CMD on 20 Nov

Alvotech (Buy, TP: USD21.00) - Yet another strong quarter

Despite another profitable quarter, the YTD performance and Q4 outlook comments, Alvotech reiterated its full-year sales guidance with the Q3 results, which seems slightly conservative to us. The pipeline is evolving as expected, and we believe several new products should reach the market in the coming years, with the biosimilar to Stelara slated for a US launch in late February. We reiterate our BUY and USD21 target price.

Sinch (Buy, TP: SEK33.00) - Remains a BUY on valuation

Adjusted for a one-off, organic gross profit growth disappointed and the outlook for Q4 and the start of 2025 remains weak. We still see a strong underlying market and reiterate our BUY due to an attractive valuation. We have lowered our target price to SEK33 (37).

September: Pulp shipments -10% y-o-y

Surprisingly weak outlook in focus

Stock down on weak outlook

Twilio Q3 better-than-expected and raised guidance

Stora acquires a Finnish sawmill company

Better than peers, as usual

SCA (Buy, TP: SEK185.00) - In pole position

Due to lower-than-expected costs for the containerboard and sawn goods businesses, Q3 earnings were above our expectations. The Q3 report removed much of the earnings uncertainty for 2025e. As a result of its unique business model (with 50% backward integration in its own forest mitigating wood price inflation), signals that pulp prices are set to improve, and earnings support from growth investments, we continue to see a good risk/reward in a high-quality name. We reiterate our BUY and have inc...

Goodwill write-down and prel. Q3 figures

Q3 EBITDA +7%

Lingering between tough macro and a recovery

CFO departure at an unfortunate timing

Wood is up and Pulp is down

Q3 preview

Sinch (Buy, TP: SEK37.00) - Another soft quarter expected

We forecast another quarter with low-single-digit organic gross profit growth, as guided for in Q2. We also see a risk that the cash flow from early payments by customers in Q2 reverses in Q3, although this should be known by the market, in our opinion. We reiterate our BUY, but have lowered our target price to SEK37 (40).

August: Pulp shipments -10% y-o-y