Outlook remains subdued
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Afarak reported Q3’19 results on Friday. Despite better than expected revenue development earnings came in clearly below our estimates and were negative. We expect earnings to stay subdued on Q4 due to weak market conditions. We abstain from giving a target price or a recommendation for Afarak Group due to the dispute between major shareholders. However, in our view the current valuation in relation to the company’s earnings ability is clearly elevated.
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