The Q4 report will mark the end to a challenging year burdened by internal transformation and restructurings, which will be the picture in Q4 as well. We do not believe in a quick fix for turning PE’s earnings momentum around, but expect that recent actions to transform group functions will start to have gradual impact on operations during 2020.

We reiterate our fair valuation mid-point of SEK 18 per share, implying 2021E EV/EBITA of 8.4x.

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