AF Gruppen (Sell, TP: NOK122.00) - Q3: underlying miss
Although reported Q3 EBIT was in line with consensus, this included a NOK39m impact from IFRS. Adjusted for this, the underlying EBIT, much like revenues, fell short of our forecast and consensus. However, order backlog and order intake beat our estimates. While the company highlighted its significant revenue and EBIT growth, we note that EPS growth did not match these levels due to the increased share count. Based on P/E valuations, we continue to find the stock overvalued versus peers. We reiterate our SELL but have increased our target price to NOK122 (120).Kilen Brygge ASSandakerveien 99B KSAF Gruppen ASA is a contracting and industrial company. Through its subsidiaries, Co. is engaged in property, building, civil engineering, environment, and energy businesses in Norway, Sweden, Poland, and the United Kingdom. Co. has divided the business into five operating segments: Civil Engineering, Building, Property, Environment and Energy.
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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