DnB Markets - Ambea (AMBEA) Ambea (Buy, TP: SEK70.00) - New-openings pipeline put back

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DnB Markets

Karl-Johan Bonnevier

EUR 447.00 For Business Accounts Only

Ambea (Buy, TP: SEK70.00) - New-openings pipeline put back

Ambea had a solid Q3, despite Covid-19 resulting in lower occupancy and longer ramp-ups for new units in its elderly care operation. The new-openings pipeline has now been put back from 2021 to 2022–2023, balancing the costs in the short term, but also delaying the benefits. With Nytida still a strong profit generator, and Norway and Denmark now making a more stable contribution, Ambea’s financials look solid to us, even if reaching its full potential has been delayed. We reiterate our BUY and SEK70 target price.

09/11/2020 26 EN

Underlying

Ambea

Ambea AB (publ) is a Sweden-based holding company within the care provider group. The Ambea group offers accommodation, support, training and staffing within health and social care. The Group has over 450 units throughout Sweden and in Norway. The Swedish operations comprise the brands Vardaga, Lara and Bemanning. Among other brands, there are Rent a Doctor, Rent a Nurse, Rent a Socionom and Careteam, as well as BoA Mellanvard. The Norwegian operations comprise support and residential care in disabilities and psychiatry through the companies Heimta and Vitale. The Company's main shareholders are ACTR Holding Ab and Actor General Partner SARL Sweden SCA. It operates Malrettet Intervensjon AS, Elevhalsan, Stod och Resurs AB and Tiltaksgruppa fokus as subsidiaries.

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SE0009663826 Nasdaq Nordic Stockholm Sweden

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

Karl-Johan Bonnevier

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Ambea (Buy, TP: SEK70.00) - New-openings pipeline put back

Ambea (Buy, TP: SEK130.00) - Acquiring Validia Oy

Ambea (Buy, TP: SEK123.00) - In capital-allocation mode

Ambea AB: 7 directors

Airthings (No_rec, TP: NOK) - Recommendation and target price withdrawn

SpareBank 1 Helgeland (Hold, TP: NOK167.00) - Softer margin, but lower costs

Smartoptics (Buy, TP: NOK27.00) - We remain optimistic

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