AF Gruppen (Sell, TP: NOK122.00) - Too-high premium versus peers
For Q4, we expect a solid 26% YOY EBIT gain, but note that this figure is boosted by M&A and that IFRS16 also has a significant impact on annual growth. Including the increased share count and IFRS16, our Q4e EPS of NOK2.86 implies a c3% YOY gain. While AFG’s EBIT margins and M&A track record are industry-leading, we find the P/E valuation too high versus peers and our 2019–2022e EPS growth. Given the high valuation, and as we see consensus downside risk on EPS, we reiterate our SELL and NOK122 target price.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.