Axactor (Buy, TP: NOK30.00) - Set for seasonally lower collections
We forecast a decline in net profit to EUR3.1m in Q3 from the EUR4.6m in Q2, mainly due to seasonally softer collections. We have reduced our 2019–2021e EPS by ~19% as we forecast lower collections, particularly on REOs, and as a result have also cut our target price to NOK30 (40). We reiterate our BUY, however, as we see significant upside potential from the current share price from an improving bottom line, benefiting from further scale and increasing IRRs on new NPL acquisitions.
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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