Aros Bostad (Buy, TP: SEK62.00) - Rental apartment potential
In Q3, the POC-based EPS were in line with our forecast at SEK0.1. The key positives were: 1) c40–50% of its building rights portfolio could become rental apartments following the strong value gains in this segment; 2) the Q3 apartment starts were in line with expectations; and 3) the guidance for potential net unit starts in 2023 considerably exceeds our estimate and could indicate upside potential to our 2025e IFRS-based EPS, while we have used a more conservative approach in our base case. We reiterate our BUY and SEK62 target price, which values the stock at 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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