Axactor (Hold, TP: NOK3.80) - Capital structure in focus
A sizeable writedown in Q4 resulted from soft collections in Axactor’s NPL book throughout 2024. For 2025, focus has shifted to deleveraging, as the company looks to ease earnings pressure from higher interest rates and wider bond spreads through a healthy capital structure and improved funding terms. Modest investments and further asset sales could also support this. While we are reassured by the commitment to improve the capital structure, the low margins on the NPL back-book remains remain an uncertainty. We have cut our 2025–2026e EPS by 2%, but reiterate our HOLD and NOK3.8 target price.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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