It is time for Sandvik to say goodbye to Sandvik Materials Technology, which will change name to Alleima and be distributed to Sandvik shareholders. Thursday 25 August is the last day of trading in Sandvik shares with the right to the distribution of shares in Alleima. The first day of trading in Alleima''s shares on Nasdaq Stockholm will be 31 August. We take a brief look at the valuation of Alleima and the rest of Sandvik and maintain our Outperform rating. Sandvik Materials Technology will be distributed to shareholders and change name to Alleima Sandvik Materials Technology is a steel business that has underperformed the Sandvik Group for a long time, at the same time as it has consumed a relatively large share of group capex. We believe SMT has impacted the valuation of the group negatively and see the exit as a positive step. Sandvik Materials Technology will change name to Alleima and shareholders of Sandvik are entitled to receive one share in Alleima for every five shares held in Sandvik. Valuation of Alleima, which should account for less than 10% of Sandvik''s market cap In our SOTP, we have valued Alleima at an enterprise value (EV) of SEK 14.8bn, corresponding to SEK ~12 per Sandvik share. That is based on 7x EV/EBIT 2023e, which corresponds to 0.80x EV/sales. We have long argued for an EV between SEK 10bn and 15bn, corresponding to around SEK 8-12 per Sandvik shares. Alleima''s book value was SEK 15.4bn at the end of June and it had a net cash position of SEK 139m. Valuation of Sandvik We have a target price of SEK 235 for the Sandvik group, of which SEK ~12 relates to Alleima and SEK ~223 relates to the rest of Sandvik. Our target price of SEK 235 corresponds to 14x EV/EBITA and the target multiple (all else being equal) will increase to around 14.5x when Alleima is distributed to shareholders. We think the distribution of Alleima could support...