Aros Bostad (Hold, TP: SEK60.00) - Rising market risks lead to HOLD
The Q1 results were solid, with a strong 78% sales/ booking rate in ongoing projects and c70% of its projects at fixed construction prices; thus, we see fairly limited near-term risks. However, we have downgraded to HOLD (BUY) and cut our target price to SEK60 (63), given: 1) the sharp rise in building-cost inflation; 2) our expectation of a weaker residential market in 2023–2024 on rising rates; and 3) a rich peer group valuation following its sector outperformance YTD.
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.