Atrium Ljungberg (Hold, TP: SEK160.00) - Development timeline in jeopardy
We believe the 47% EPRA NRV discount (above peers at 37%) reflects the company’s weaker implied EBIT yield of 4.2% in 2023e (versus peers at 4.7%) and market expectations of delays in its large project development plans due to market factors. We reiterate our HOLD despite solid Q2 results and its deep NAV discount. We have lowered our 2023–2024e EPS by 10–11% owing to rising rates and increasing interest-bearing debt (+16% QOQ), and have cut our target price to SEK160 (190) on a higher valuation yield.Atrium Ljungberg is a property company. Co. owns, develops and manages properties and areas, primarily for the retail and office sectors. Co.'s operations are primarily located in Stockholm, Uppsala and Malmo. Co. develops areas and city districts in these three regions with a mixture of businesses. Most of Co.'s office portfolio is found in Stockholm: Sickla, Farsta, Sodermalm, Hagastaden and Kista. Co.'s residential properties are in the city district of Arvinge in Kista and the Mobilia area in Malmo. As of Dec 31 2013, Co.'s property portfolio includes a total of 47 properties.
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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