Aros Bostad (Buy, TP: SEK62.00) - Ramp-up progression is key
We have made no EPS forecast changes ahead of the Q3 results (due at 07:00 CET on 26 November), and we believe the company has sufficient cash to pay for its recent acquisitions without increasing its debt. We forecast Q3 EPS (IFRS-based) of SEK0.6 based on our assumption of 53 net units completed (our POC-based Q3 EPS is SEK-0.1). We still believe this is a long-term case, and our focus will be on the continued ramp-up of its business activity and its ability to avoid potential delays to project starts. We reiterate our BUY and SEK62 target price, corresponding to a ~6x 2025e P/E.
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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