Axactor (Buy, TP: NOK50.00) - Ramping up
We expect Q3 net profit of NOK0.6m (results due at 07:00 on 30 October). Management has guided broadly flat results QOQ, with underlying growth in operations offset by seasonality due to the annual August getaway in southern Europe. We have reduced our 2019–2020e EPS by ~10% to reflect lower investments in Q3 than previously forecast, as well as raising our amortisation estimates somewhat. The 2018 Net profit estimate is reduced by EUR9m. We believe the investment case is gradually being de-risked as Axactor emerges from its start-up phase; we reiterate our BUY recommendation and NOK50 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.
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