AF Gruppen (Sell, TP: NOK135.00) - Solid Q4 beat, still too-high P/E
With a spiking EBIT margin in several segments, Q4 far outperformed our EPS estimate and consensus. The order backlog was the only soft spot, but as AF Gruppen won a major Civil order in February, we have raised our 2022–2024e revenue. AF Gruppen remains a top-tier company in EBIT margins, and has solid revenue and EBIT growth. However, on a rising share count and growing minority share of profits, its EPS have not kept up with its revenues and EBIT. We reiterate our SELL due to the high P/E versus peers, but we have raised our target price to SEK135 (130).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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