Ferronordic will report its Q2 results on 12 August. We forecast sales to be up by 45% y/y and EBIT by 38% despite 11% currency headwind. We were surprised by the soaring Russian market data (3 August), which suggests 85% y/y unit sales growth for Ferronordic's mix; we raise our sales estimates by 9-14% for 2021-23 to better reflect this and the ongoing German market recovery. Our estimate revisions leave us 8% above Infront's post-Q1 consensus on Q2 adjusted EBIT. Ferronordic is trading at 6x 2022E EV/EBIT, a 50% discount to our peer average, despite it diversifying into Germany. We raise our multiples-based fair value range to SEK 250-309 (197-248), representing a 2022E EV/EBIT of 6.0-7.5x. Marketing material commissioned by Ferronordic.

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