While Proact’s Q2’19-report in most ways was a disappointment, we argue that the sharp fall in the share price of over 20% is too much. The system revenue is always lumpy, and the ~10% drop is nothing to worry about. However, the corresponding decline in non-cloud service revenue is a concern. The cloud business performs well, and M&A is still on the table. While we lower our Base case to SEK 215 (235), we believe the risk/reward in Proact is attractive at the current share price of SEK 184.

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