DnB Markets - YIT Oyj (YIT) YIT (Sell, TP: EUR2.00) - Finnish recovery not started yet

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DnB Markets

Simen Mortensen

EUR 473.25 For Business Accounts Only

YIT (Sell, TP: EUR2.00) - Finnish recovery not started yet

According to YIT, the Baltic and CEE residential markets have recovered – but Finland has still to see any sign of a rebound. Reported Q3 EBIT was broadly in line with our estimate, including a EUR6m one-off. The order backlog was down 18% YOY, another concern for us, but we believe it should improve in Q4. However, we continue to see downside risk to consensus, expecting the recovery to be slower than is reflected in the former and the share price. We reiterate our SELL and EUR2 target price.

01/11/2024 1 EN

Underlying

YIT Oyj

YIT provides services for the construction sector. Co. has two segments: Housing and Business Premises and Infrastructure. The Housing segment is engaged in the development and construction of housing, holiday homes and entire residential areas, with a focus on its own developments. This segment is also engaged in property maintenance in Russia. The Business Premises and Infrastructure segment is engaged in the development and construction of offices, shopping malls, public facilities, assisted living facilities and other business premises; renovation projects; construction of roads, bridges, tunnels, rail and metro stations, ports and power plants; as well as road and street maintenance.

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FI0009800643 Nasdaq Nordic Helsinki Finland

Provider

DnB Markets

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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Analysts

Simen Mortensen

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YIT (Sell, TP: EUR2.00) - Finnish recovery not started yet

YIT (Sell, TP: EUR2.00) - New ambitions, but with a condition

KPIs and profits reflect cycle-lows

The weekly navigator

Ørsted (Hold, TP: DKK390.00) - Balance sheet risk still in focus

US shale: limited revisions and colour on 2025 activity levels

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