Axactor (Buy, TP: NOK40.00) - Scalability in the cost base
The main positive in the Q2 report was the cost base, which was EUR8m better than our forecast. While we only extrapolate part of this beat, we believe it is a vital component for boosting margins through building scale. With several smaller misses on other P&L lines and lower gross collections than we forecast, we have cut our 2020e EPS by 3% and our 2021e EPS by 8%, which is largely a result of the updated ERC curves. We reiterate our BUY and NOK40 target price as we continue to find Axactor attractively valued at a 2020e P/E of 6x and believe it should be trading at the higher end of its peer group range, given its focused strategy and growth prospects.
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.