Nokian Tyres (Hold, TP: EUR9.00) - All eyes on crucial winter season
Despite low comparable figures and improved winter-tyre channels YOY, we are cautious ahead of the Q3 report as: 1) consensus is for c17% organic growth for H2, while peers have reported low-to-mid-single-digit sales trends; 2) we believe weak new car sales in Europe could hit winter-tyre demand (often sold as add-ons); and 3) consumers may have continued to favour budget over premium tyres. However, we have raised our target price to EUR9.0 (8.5) on good progress in ramping up new capacity, and reiterate our HOLD.Nokian Tyres is a tyre manufacturer. Co. mainly sells its products in the aftermarket. Co. and its subsidiaries include the Vianor tyre retail chain, which provides wholesale and retail services in Co.'s primary markets. The core business units in Co. and its subsidiaries are Passenger Car Tyres, which develops, manufactures, and markets summer and winter tyres for passenger cars and delivery trucks as well as SUVs; Heavy Tyres, which focuses on special tyres; as well as Vianor, which provides tyres for all vehicles: passenger cars, vans, trucks, and heavy machinery. In addition to Nokian-branded tyres, the Vianor tyre retail chain sells other tyre brands and a variety of motoring products.
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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