Cash (flow) is king (Nordea)
Sdiptech delivered a solid report above our expectations. Net sales grew 38% y/y, 16% of which was organic. EBITA* increased 46%, however, declining by 8% organically due mainly to tough comparables. We expect Sdiptech to improve its cash flow in H2 2021 and continue its acquisition journey. We find more than SEK 800m in firepower, which could add ~30% to EBITA* LTM. We raise our 2021-23 estimates by 3-4% for sales and 1-2% for EBITA*, and update our multiples-based fair value equity range to SEK 383-447 (372-465), representing a 2022E EV/EBITA of 25-29x. Marketing material commissioned by Sdiptech.