Duell announced yesterday that Magnus Miemois is leaving his position as the company’s CEO. The announcement did not disclose the background for the dismissal, but we consider it likely that Duell’s sluggish performance led to the CEO’s termination. This, in turn, increases the probability of development being weaker than our forecast as well as the likelihood of a profit warning; reflecting this, we lowered our estimates for the coming years. We also expect Duell to have to resort to additional financing, which would dilute the ownership stake of current shareholders. Taking this into account, the valuation appears neutral, and short-term positive share price drivers are few and far between. In light of this overall picture, we are lowering our target price for Duell to EUR 2.80 (prev. EUR 3.20) and our recommendation to Reduce (prev. Accumulate).
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