Proact: We expect a solid Q4e as well - ABG

Organic growth and earnings growth to remain high in Q4e
Small estimate changes, adj. EBITA cut 0-1%
M&A could be imminent, share at 8.4x EV/EBITA 2025e


Improved system sales but small setback in cloud

Proact delivered a solid Q3 report with 9% organic growth (ABGSCe 9%) and adj. EBITA (for a SEK 9m cost in conjunction with the 30th anniversary party) of SEK 88m, 4% ahead of ABGSCe. System sales grew 20% organically on a relatively easy comp, and we estimate momentum will be sustained in Q4e. What disappointed us slightly was the -2% organic growth in service sales, partly driven by a weaker consulting market (and headcount reductions) alongsideslightly negative cloud revenue growth. This wasmore of a temporary effect, according to the company, and we therefore expect to see a gradual improvement in the coming quarter coming back to 5-10% organic growth again. On a group level, this means that we estimate 9% organic growth in Q4e as well.