Axactor (Buy, TP: NOK5.00) - A quarter of high NPL investment
We forecast Q4 net profit of EUR2.1 (up from EUR0.3 in Q3), driven by continued growth in gross collections and seasonality while the underlying cost base is largely stable (results due at 07:00 CET on 13 February). We expect portfolio acquisitions to total EUR195m given the announced acquisitions in Q4. We expect earnings to pick over the course of 2018 as collections on REOs portfolios start and Axactor achieves economies of scale from its ramp-up of operations. We have trimmed our 2018–2020 estimates by ~2% and reiterate our BUY recommendation and NOK5 target price.Axactor AB (publ), formerly known as Nickel Mountain Group publ AB, is a Sweden-based company, which is primarily involved in the credit management service industry. The Company is focused on non-performing loan (NPL) sector that includes credit card debt, private leasing, residual mortgages, consumer loans, mortgages, secured loans with collateral, small business loans, among others. The Company is active within the debt purchase and debt collection area. It specializes in the amicable collection, legal collection, surveillance and recovery services. Axactor AB (publ) operates through its wholly owned subsidiary ALD Abogados SL, which is a Spain-based legal debt collection platform. The Company has a portfolio pipeline in Spain, Germany and Italy, among others.
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.